JPMorgan Chase & Co. (JPM) Narrative

Sources: Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (accession 0001628280-26-008131, filed February 13, 2026); Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (accession 0001628280-26-029344, filed May 1, 2026); and Current Reports on Form 8-K filed after the quarter end, cited individually below.

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Business

From the FY2025 Form 10-K, accession 0001628280-26-008131.

JPMorgan Chase & Co. is a financial holding company incorporated in Delaware in 1968 and the largest bank in the United States, with $4.4 trillion in assets and $362.4 billion of stockholders' equity at December 31, 2025 and 318,512 employees. It is a leader in investment banking, consumer and small-business financial services, commercial banking, financial transaction processing and asset management, operating under the J.P. Morgan and Chase brands.

The principal bank subsidiary is JPMorgan Chase Bank, N.A., a national banking association that owned or leased 5,083 branches across 48 states and Washington, D.C. at year-end 2025. The principal non-bank subsidiary is J.P. Morgan Securities LLC, a U.S. broker-dealer. Outside the U.S., the main operating subsidiaries are J.P. Morgan Securities plc (U.K.) and J.P. Morgan SE (Germany), both held under JPMorgan Chase Bank, N.A.

Segments

The Firm reports three business segments, with residual activity in Corporate. CCB is the consumer segment; CIB and AWM are the wholesale segments.

Consumer & Community Banking (CCB), Products and services to consumers and small businesses through branches, ATMs, digital and telephone banking. Organized into:

• Banking & Wealth Management, deposit, investment and lending products, cash management, payments and services (Consumer Banking, Business Banking, J.P. Morgan Wealth Management).
• Home Lending, mortgage origination and servicing, plus residential mortgage and home-equity portfolios.
• Card Services & Auto, credit card issuance, payment solutions, travel services, merchant offers and lifestyle benefits; auto loan and lease origination and servicing.

Commercial & Investment Bank (CIB), Comprised of two businesses serving corporate and institutional clients globally:

• Banking & Payments, advisory on corporate strategy and structure, equity and debt capital raising, loan origination and syndication; and payments services spanning liquidity and account solutions, commerce solutions, clearing, trade and working capital.
• Markets & Securities Services, global market-making across cash and derivative instruments, risk management solutions, lending, prime brokerage, clearing and research; plus Securities Services, a leading global custodian offering custody, fund services, liquidity and trading services, and data solutions.

Asset & Wealth Management (AWM), A global investment and wealth manager with $7.1 trillion of client assets at year-end 2025, split between Asset Management (multi-asset solutions across equities, fixed income, alternatives and money market funds for institutional and retail investors) and the Global Private Bank (retirement products, brokerage, custody, estate planning, lending, deposits and investment management for high-net-worth clients). The majority of AWM client assets sit in actively managed portfolios.

Corporate, Includes Treasury and CIO, which manages the Firm's liquidity, funding, capital, structural interest rate and foreign exchange risks. The Treasury and CIO investment securities portfolio was $774.0 billion net of allowance at December 31, 2025, with an average credit rating of AA+. Other Corporate holds the Strategic Investment Group within the Firm's Security and Resiliency Initiative, and the international consumer initiatives (Chase U.K., J.P. Morgan Personal Investing, and an ownership stake in C6 Bank).

How the Firm makes money

Roughly 52% of 2025 revenue was net interest income ($95.4 billion of $182.4 billion), earned on a $3.8 trillion average interest-earning asset base funded largely by $2.5 trillion of average deposits. The remaining ~48% was noninterest revenue ($87.0 billion): investment banking fees, market-making (principal transactions), asset management fees, card income, payments and lending/deposit fees, commissions and custody fees, and auto operating lease income. Segment results are managed on an internal funds-transfer-pricing basis that moves structural interest rate and liquidity risk to Treasury and CIO, and capital is allocated to each segment using Basel III Standardized RWA, the GSIB surcharge, and a severe-stress capital-depletion simulation.

Competitive and regulatory setting

The Firm competes with banks, brokers, investment banks, hedge funds, private equity firms, insurers, mutual fund and card companies, and increasingly with digital asset and financial technology firms and non-financial companies disintermediating traditional banking products.

It is regulated as a bank holding company and financial holding company by the Federal Reserve, with JPMorgan Chase Bank, N.A. supervised by the OCC and FDIC, broker-dealers by the SEC and FINRA, swaps activity by the CFTC, and non-U.S. entities by the PRA/FCA, ECB and other local authorities. Capital and liquidity are set to the Basel III framework; the Firm is subject to annual CCAR supervisory stress testing that determines its Stress Capital Buffer. Regulatory items disclosed as live at the time of the 10-K included a March 2024 OCC consent order relating to trade-surveillance data completeness, a pending revision to the U.S. risk-based capital framework, October 2025 Federal Reserve proposals on stress-test transparency, an April 2025 proposal to average the SCB over two years, the CFPB's enjoined open-banking data rule, and a proposal to lower the debit interchange fee cap.

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Risk factors

From the FY2025 Form 10-K, accession 0001628280-26-008131. Condensed to the substantive risks.

Legal and regulatory

• Pervasive regulation. The Firm must comply with applicable law in every jurisdiction it operates. Changes in law, regulatory decisions or supervisory expectations have required and could require it to limit products, raise prices, reduce market-making liquidity, dispose of assets at disadvantageous prices, or forgo business opportunities. Regulators may adopt new interpretations of existing law and require the Firm to demonstrate that prior conduct complies.
• Regulatory asymmetry. Larger firms face more stringent supervision; fintech competitors may face little or none; non-U.S. regimes may favor local firms or impose ring-fencing, local capital/liquidity, and locally-based subsidiary requirements, and may conflict outright with U.S. law.
• Litigation and investigations. The Firm is a defendant in numerous civil and governmental proceedings, and exposure is unpredictable and could exceed reserves. Management expects continued heightened scrutiny, that authorities will pursue formal punitive enforcement rather than informal supervisory resolution, and that prior actions raise the likelihood of new ones. Admissions of wrongdoing or criminal pleas can bring collateral consequences, disqualification from certain clients or jurisdictions, greater litigation exposure, and loss of permission to operate certain businesses.
• Unpredictable legal frameworks. In jurisdictions where the rule of law is inconsistent or extralegal, the Firm faces arbitrary investigations, unenforceable contract and IP rights, and license terminations.
• Debanking politics. Governmental actions that discourage, or conversely penalize declining, business with certain industries can produce adverse consequences regardless of which course the Firm takes.
• Resolution. If the Parent Company entered resolution, holders of equity and eligible long-term debt absorb losses first, junior to creditors of the subsidiaries. Neither the Federal Reserve nor the FDIC is obliged to follow the Firm's preferred single-point-of-entry strategy, and losses under an alternative strategy could be greater. Changes in resolution-plan requirements could force legal-entity restructuring or higher funding costs; a joint deficiency finding could bring more stringent capital, leverage or liquidity requirements and growth restrictions.

Political and market

• Political and geopolitical developments. Monetary policy, fiscal policy, sanctions, tariffs and trade policy, military deployment, immigration policy and government shutdowns can erode confidence in the U.S. economy, potentially undermine the dollar's safe-haven status, raise targeted cyber-attack risk, and trigger retaliatory countermeasures. Named risk regions: Russia, the Middle East and China. Outcomes could include slower growth, inflation or recession, wider credit spreads, and large-scale sales of government debt.
• Adverse economic and market conditions could hit market-making positions and the investment portfolio through severe declines in asset values, unexpected credit events and rating downgrades, large counterparty losses, and previously uncorrelated factors becoming correlated.
• Interest rates and credit spreads. Higher rates generally lift net interest income but can also reduce real estate loan originations, drive deposit loss to higher-yielding products, cause AFS securities losses, and increase charge-offs on variable-rate loans; a low- or negative-rate environment compresses margins and reduces MSR value. Widening credit spreads raise borrowing costs and can hurt earnings on fair-valued liabilities.
• Valuation. Illiquid or volatile markets make certain instruments extremely difficult to value; hedging strategies may not be effective in extreme events.

Credit

• Losses from defaults by clients, counterparties, CCPs and other market participants, including mutualized loss-sharing at CCPs and non-default CCP losses. The Firm has experienced, and could again experience, borrower or counterparty fraud in the accounting, reporting or representation of collateral, which undermines collateral requirements.
• Concentration risk across related industries and geographies; commercial real estate clients specifically flagged, where hybrid work reducing tenancies could depress property values and impair borrowers' ability to refinance.
• Private credit interconnection, the significant expansion of private credit could worsen losses among non-bank lenders and their borrowers, especially if stress spreads to broader funding and credit markets, given weaker underwriting standards, less liquid loans and limited transparency at some non-bank lenders.
• Consumer credit could be harmed by excessive expansion of consumer credit by competitors, leading to price cuts and lending to less-creditworthy borrowers.

Liquidity and capital

• Liquidity could be impaired by market-wide illiquidity, Federal Reserve balance-sheet reduction lowering system deposits, unexpected deposit loss or migration, higher-than-anticipated draws on lending commitments, and loss of confidence in the Firm or in banks generally.
• The Parent Company is a holding company dependent on dividends from JPMorgan Chase Bank, N.A. and dividends/borrowings from the intermediate holding company (JPMorgan Chase Holdings LLC) to service its debt, pay dividends and repurchase securities. Regulatory dividend restrictions and IHC capital/liquidity thresholds could push the Parent into resolution sooner than would otherwise be the case.
• Credit rating downgrades would reduce capital-markets access, raise issuance and servicing costs, trigger additional collateral requirements, and shrink the counterparty universe.
• Capital requirements can rise from regulator actions, RWA growth, or higher CCAR stress losses raising the SCB, constraining buybacks, dividends and business activity.

Operational

• Operational system failure or disruption. The Firm has experienced and expects to continue to experience degraded data processing, data quality issues, network outages, malfunctioning software, and third-party service interruptions, with customer-facing effects including inability to access accounts and exfiltration of customer personal data.
• Cybersecurity. The Firm has experienced security breaches from cyber attacks and states plainly that future breaches are inevitable. Threat actors include state-sponsored groups, cyber-criminals and hacktivists. Risks are intensified by geopolitical tensions, and by AI and quantum computing enabling more advanced social engineering and potentially nullifying existing cryptographic protections, the Firm may need to make significant investment in quantum-resistant encryption that may not be completed before threats become operational.
• Interconnectedness with clients, vendors, retailers, payment processors, data aggregators, custodians, CCPs and exchanges extends operational risk beyond the Firm's own security perimeter.
• New products, platforms, technologies and acquisitions may carry operational risks the Firm fails to identify, including complex or lengthy control remediation when integrating acquired businesses.
• Workforce dependence, staffing shortages, control failures by employees, theft or fraud by employees, and human error.
• Personal information, global privacy law compliance can restrict cross-border data transfer and affiliate sharing; mishandling can trigger investigations and penalties. Growing technological sophistication raises identity-fraud risk through convincing false identities and manipulated verification.
• Extraordinary events beyond the Firm's control: cyber attacks, physical security breaches, utility/telecom failures, natural disasters and severe weather, health emergencies, civil unrest, hostilities and terrorism.
• Data management deficiencies could undermine risk reporting, regulatory and financial reporting, compliance monitoring, and business decisions.
• Vendor and third-party oversight to enhanced regulatory standards; failure could harm clients and raise costs.
• Risk management framework and model risk. Models rely on historical trends that may not persist, may contain erroneous data or algorithms, may embed biases, and review processes may fail to detect flaws. Credit-loss allowances require macroeconomic forecasts that may be inaccurate. Models used for RWA require regulatory approval; non-approval means higher capital charges.
• Disclosure and financial reporting control lapses could restrict capital-markets access and expose the Firm to litigation and penalties.

Strategic

• Poor strategic choices on products, geographies, client types, acquisitions, counterparties and technology could impair growth and earnings.
• Competition, technological advances have let non-depository institutions offer consumer lending, payments processing, cryptocurrency including stablecoins, tokenized securities and algorithmic investment advice. Distributed ledger technology may enable products that do not require intermediation at all. Non-banking competitors advocating for regulatory exemptions could disadvantage traditional institutions.
• Advanced technologies including AI. Named risks: AI system failures and inaccurate or biased output from rapid deployment or insufficient controls; increased exposure to cyber attack, system manipulation or data loss where agentic systems lack safeguards on data and system access; AI-enabled cyber threats; conflicting international AI regulation; competitive disadvantage if rivals deploy AI faster; and replacement or disintermediation of direct customer relationships if AI agents autonomously manage or intermediate financial decisions and product selection for customers. The Firm also flags miscalibrated workforce planning in either direction, over-reliance on AI eroding critical thinking, judgment and problem-solving among employees, or failure to adopt AI squandering the efficiency advantage.
• Climate change, physical risks (acute weather, shifting climate patterns) lowering asset values and raising insurance costs; transition risks (regulation, carbon taxes, new technology) raising compliance costs and impairing client profitability.

Conduct, reputation and people

• Employee misconduct has resulted and could result in litigation, consent orders, deferred/non-prosecution agreements and criminal sanctions; heightened where newly-acquired employees are not successfully integrated.
• Reputation can be damaged by decisions to engage or not engage with a client, by inaccurate or misleading information, including results generated by AI, spread rapidly through social media, and by perceived unfair treatment of customers. Consequences include client attrition, hiring difficulty and investor divestment.
• Conflicts of interest are highly complex given the breadth of the Firm's activities; failure to address them or to meet fiduciary obligations invites litigation, enforcement and reputational harm.
• Workforce: competitors' targeted recruitment, the need for more-skilled workers, restrictive immigration or travel policies, technology-driven workforce displacement, and, explicitly named, succession planning for key leadership roles such as the Chief Executive Officer and Operating Committee members.

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Management's discussion and analysis, full year 2025

From the FY2025 Form 10-K, accession 0001628280-26-008131. Comparisons are 2025 versus 2024.

Firmwide results

Net income $57.0 billion, down 2%; EPS $20.02; ROE 17%; ROTCE 20%.

Total net revenue $182.4 billion, up 3%:

• Net interest income $95.4 billion, up 3%, driven by higher Markets NII, higher revolving balances in Card Services, higher wholesale deposit balances and investment securities activity, largely offset by deposit margin compression and lower rates. NII excluding Markets was $92.6 billion, flat year over year. Average interest-earning assets $3.8 trillion (up $297 billion) at a 5.05% yield (down 45 bps); net yield 2.50% (down 13 bps); net yield excluding Markets 3.75% (down 9 bps).
• Noninterest revenue $87.0 billion, up 2%, higher Markets NIR, asset management fees in AWM and CCB, auto operating lease income, lower net investment securities losses, higher Payments and investment banking fees, and a $588 million First Republic-related gain in Q1 2025. Offset predominantly by the absence of the $7.9 billion net Visa gain recorded in Q2 2024 and lower card income.

Noninterest expense $95.6 billion, up 4%, higher compensation (revenue-related pay and headcount growth), higher brokerage expense and distribution fees, higher auto lease depreciation, continued technology and marketing investment, and higher occupancy including the new headquarters. Partially offset by FDIC special assessment accrual releases of $763 million (versus a $725 million accrual increase in 2024) and the absence of the $1.0 billion Visa share contribution to the JPMorgan Chase Foundation.

Provision for credit losses $14.2 billion (2024: $10.7 billion). Net charge-offs $9.8 billion, up $1.2 billion, mostly Wholesale and Card Services. Net allowance addition $4.4 billion:

• $3.3 billion consumer, including $2.2 billion related to the Apple Card transaction, plus Card Services loan growth and macroeconomic outlook changes, partly offset by reduced borrower uncertainty.
• $1.1 billion wholesale, from portfolio growth, client-specific credit quality changes, an update to loss assumptions on certain leveraged loans, and estimated losses related to borrower fraud in certain secured lending facilities.

Total allowance for credit losses $31.2 billion at year-end; allowance-to-retained-loans coverage 1.83% (2024: 1.87%). There was also a $3.0 billion net addition to the allowance for lending-related commitments, predominantly $2.2 billion for the Apple Card transaction.

Nonperforming assets $10.4 billion, up 11%, higher consumer nonaccruals predominantly from the January 2025 California wildfires, higher CIB loans at fair value, and wholesale downgrades in certain industries.

Balance sheet and capital. Average loans $1.4 trillion (up 6%, led by CIB and AWM); average deposits $2.5 trillion (up 5%). CET1 capital $288.5 billion; Standardized CET1 14.6% and Advanced CET1 14.1%, as of December 31, 2025 the Advanced ratios became more binding than Standardized. SLR 5.8%. TBVPS grew 10.5% to $107.56. HQLA ~$915 billion plus ~$548 billion of unencumbered marketable securities, for roughly $1.5 trillion of liquidity sources. The Firm transferred $44.1 billion of securities from AFS to HTM in Q3 2025 for asset-liability management. The Firm provided approximately $3.3 trillion of total credit and capital in 2025, including $280 billion for consumers and $33 billion for U.S. small businesses.

Effective tax rate decreased, driven by a $774 million income tax benefit in Q2 2025 from resolution of certain tax audits and finalized foreign-currency translation tax regulations, plus higher share-based award vesting benefits.

Segment results, 2025

CCB: net income $18.2 billion (up 4%) on revenue $76.0 billion (up 6%). NII $58.2 billion, up 6%, on higher Card Services revolving balances and higher Banking & Wealth Management deposit margin reflecting a Q4 2024 funds-transfer-pricing change (fully offset in Corporate). NIR $17.8 billion, up 7%, on auto operating lease income and BWM asset management and deposit fees, partly offset by lower card income (lower net interchange as higher sales volume was more than offset by rewards costs and partner payments, plus higher amortization of new account origination costs). Expense $40.3 billion, up 6%. Provision $11.5 billion; net charge-offs $8.2 billion. Firmwide mortgage origination volume was $63.4 billion (2024: $47.4 billion).

CIB: net income $27.8 billion (up 12%) on revenue $78.5 billion (up 12%).

• Banking & Payments $37.1 billion, up 5%. Investment Banking revenue $10.2 billion (up 6%); IB fees up 7%, #1 for Global Investment Banking fees per Dealogic. Debt underwriting $4.5 billion (up 9%), advisory $3.5 billion (up 6%), equity underwriting $1.7 billion (up 2%). Payments $19.3 billion (up 7%). Lending $7.6 billion (up 2%).
• Markets & Securities Services $41.3 billion, up 19%. Markets revenue $35.8 billion, up 19%, Equity Markets $13.3 billion, up 33% (particularly Equity Derivatives); Fixed Income Markets $22.5 billion, up 12%. Securities Services $5.6 billion, up 10%. Markets recorded only two loss days in 2025.
• Expense $38.2 billion, up 8%. Provision $2.6 billion (2024: $762 million), with net charge-offs $1.5 billion.

AWM: net income $6.5 billion (up 20%) on revenue $24.1 billion (up 12%). Asset Management revenue $11.7 billion (up 15%); Global Private Bank $12.4 billion (up 9%). Expense $15.3 billion, up 6%. Provision $97 million, largely a Q3 2025 client-specific charge-off. AUM $4.8 trillion, up 18%; client assets $7.1 trillion, up 20%, on higher markets and continued net inflows.

Corporate: net income $4.5 billion versus $10.6 billion. Revenue $7.0 billion versus $17.4 billion, NII $6.1 billion, down $3.7 billion on lower rates and the consumer-deposit FTP change; NIR $911 million versus $7.6 billion on the absence of the $7.9 billion Visa gain, partly offset by lower securities repositioning losses and the $588 million First Republic gain. Expense $1.8 billion, down 54%.

Management outlook for 2026 (given January 13, 2026)

• Net interest income of approximately $103 billion; NII excluding Markets approximately $95 billion, market dependent.
• Adjusted expense approximately $105 billion, market dependent.
• Card Services net charge-off rate approximately 3.4%.

Pending Apple Card transaction

Announced January 7, 2026: Chase will become the new issuer of Apple Card. The Firm entered a forward purchase commitment on December 30, 2025 to acquire the Apple credit card portfolio, with expected closing approximately 24 months thereafter. The Firm took a $2.2 billion allowance for lending-related commitments in Q4 2025 for this transaction, estimated on forward-looking assumptions about the portfolio's risk characteristics and expected credit losses at closing.

No purchase price is disclosed. The closest sizing the Firm gives is exposure: at December 31, 2025 it estimated total credit exposure at the time the transaction is expected to close of approximately $104 billion, including approximately $23 billion of estimated drawn loans, the remainder being undrawn card lines. The transaction also added approximately $23 billion of RWA under the Standardized approach and approximately $110 billion under the Advanced approach at year-end 2025, with the Advanced figure expected to fall to roughly $30 billion once the necessary modeling steps were completed.

Other

On December 8, 2025, Todd A. Combs resigned from the Board of Directors and joined the Firm as head of the Strategic Investment Group within the Security and Resiliency Initiative.

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Current quarter, three months ended March 31, 2026

From the Form 10-Q for the quarter ended March 31, 2026, accession 0001628280-26-029344. Comparisons are Q1 2026 versus Q1 2025.

Firmwide

Net income $16.5 billion, up 13%; EPS $5.94, up 17%; ROE 19%; ROTCE 23%. Total assets $4.9 trillion; stockholders' equity $364.0 billion.

• NII $25.4 billion, up 9%, higher Markets NII, higher deposit balances and higher Card Services revolving balances, partly offset by lower rates. NII excluding Markets $23.3 billion, up 3%. Average interest-earning assets $4.1 trillion, up $467 billion, at a 4.83% yield (down 36 bps); net yield 2.50% (down 8 bps); net yield excluding Markets 3.72% (down 8 bps).
• NIR $24.5 billion, up 11%, higher asset management fees (up 17% to $5.5 billion), investment banking fees, Markets NIR, auto operating lease income and Payments fees, offset by the absence of the prior-year $588 million First Republic gain. Commissions and other fees up 22%.
• Expense $26.9 billion, up 14%, compensation $15.3 billion (up 9%) on revenue-related pay and headcount; noncompensation $11.5 billion (up 21%) on technology and marketing investment, brokerage and distribution fees, auto lease depreciation and occupancy. Also reflects the absence of a prior-year $323 million FDIC special assessment accrual release; FDIC-related expense swung to $332 million from $(11) million. Legal expense $223 million versus $121 million.
• Provision $2.5 billion, down 24%. Net charge-offs $2.3 billion (essentially flat, down $16 million); net allowance addition only $191 million, a $327 million wholesale build on client-specific credit quality changes, against a $139 million consumer release predominantly driven by improvements in home prices. Total allowance $31.4 billion; coverage ratio 1.82% versus 1.94% a year earlier.
• Effective tax rate 19.5% versus 20.5%, on higher share-based award vesting benefits from a higher share price.
• Nonperforming assets $10.0 billion, up 10% year over year (down from $10.4 billion at year-end).
• Average loans $1.5 trillion, up 11%; average deposits $2.6 trillion, up 7%. Employees 320,079.

Capital and liquidity

CET1 capital $291 billion; Standardized CET1 14.3% and Advanced CET1 14.1% (Advanced more binding). SLR 5.6%. HQLA ~$941 billion plus ~$565 billion of unencumbered marketable securities, roughly $1.5 trillion of liquidity sources.

Capital actions in the quarter: the Board declared a quarterly common dividend of $1.50 per share (announced March 17, 2026, paid April 30, 2026), $4.07 billion in total, versus $1.40 per share a year earlier. The Firm repurchased 27.5 million shares for $8.3 billion (Q1 2025: 30.0 million for $7.6 billion) under the $50 billion program authorized effective July 1, 2025. The 2026 Capital Plan was submitted to the Federal Reserve on April 6, 2026.

Regulatory developments disclosed in the quarter:

• U.S. Basel III Re-Proposal (March 2026). The Federal Reserve, OCC and FDIC proposed replacing the dual Advanced/Standardized RWA calculation with a single expanded risk-based approach that would not permit internal models except for market risk, and would add a new Operational Risk RWA component. Applied to positions at December 31, 2025, the Firm estimates this would increase required CET1 capital by approximately 6%.
• GSIB Surcharge Re-Proposal (concurrent). Would move to annual assessment using calendar-year averages, cut increments from 50 bps to 10 bps, and adjust indicator weights. Under current rules the Firm's GSIB surcharge calculated as of December 31, 2025 would be 5.5% effective January 1, 2028; under the re-proposal the Firm estimates it would fall to 5.2%. Taken together, the two proposals would raise required CET1 by approximately 4% versus the requirement that would otherwise take effect January 1, 2028. Comments were due June 18, 2026.
• Enhanced SLR final rule early adopted January 1, 2026, replacing the static leverage buffers with an eSLR buffer of 50% of the U.S. Method 1 GSIB surcharge (capped at 1% for insured depository subsidiaries), with corresponding TLAC and eligible-LTD adjustments.
• The Federal Reserve confirmed in February 2026 that SCB requirements will remain at current levels through September 30, 2027, with new requirements calculated in 2027 on revised models. The Firm's SCB stays at 2.5% and its Standardized CET1 requirement including buffers at 11.5%.
• The Apple Card transaction's RWA impact fell to approximately $30 billion at March 31, 2026 from approximately $110 billion at December 31, 2025, reflecting completion of the necessary modeling steps.

Segments, Q1 2026

CCB: net income $5.0 billion, up 12%; revenue $19.6 billion, up 7%; ROE 32%. NII $14.7 billion, up 4%, on Card Services revolving balances. NIR $4.8 billion, up 16%, on auto operating lease income and BWM asset management and deposit fees, partly offset by lower card income (higher amortization of new account origination costs, mostly offset by higher annual fees; net interchange roughly flat). Expense $11.0 billion, up 11%. Provision $2.1 billion; net charge-offs $2.2 billion (up $41 million) with a $145 million allowance release on improving home prices. Card Services net charge-off rate 3.47%. Card Services loans $239.1 billion, up 7%; Home Lending $238.6 billion, down 1%; Auto $71.0 billion, down 2%. Deposits $1.11 trillion, up 3%. Client investment assets up 18%; debit and credit card sales volume up 9%; active mobile customers up 7%.

CIB: net income $9.0 billion, up 30%; revenue $23.4 billion, up 19%; ROE 21%.

• Banking & Payments $10.4 billion, up 19%. Investment Banking revenue $3.1 billion, up 38%; IB fees up 28%, advisory fees $1.3 billion, up 82%, on Diversified Industries and Natural Resource Group deals; equity underwriting $472 million, up 46%; debt underwriting $1.1 billion, down 7% on lower non-investment grade loans. #1 for Global Investment Banking fees with 9.8% wallet share. Payments $5.1 billion, up 12%. Lending $2.2 billion, up 13%, largely on fair value gains on purchased credit protection.
• Markets & Securities Services $13.0 billion, up 19%. Markets revenue $11.6 billion, up 20%, Fixed Income Markets $7.1 billion, up 21% (Commodities, Credit, Currencies & Emerging Markets, Securitized Products; Rates lower); Equity Markets $4.5 billion, up 17%. Securities Services $1.5 billion, up 18%.
• Expense $11.1 billion, up 13%. Provision $482 million (prior year $705 million), with a $362 million allowance build and $120 million of net charge-offs. Total loans $643.9 billion, up 18%; Global Corporate Banking & Global Investment Banking loans up 31% to $159.0 billion.

AWM: net income $1.8 billion, up 12%; revenue $6.4 billion, up 11%; ROE 44%. Asset Management revenue $3.1 billion, up 15%; Global Private Bank $3.3 billion, up 8%. NII $1.7 billion, down 1%, on narrower loan spreads and deposit margin compression. Expense $4.2 billion, up 12%. AUM $4.8 trillion, up 16%. Loans $274.9 billion, up 16%; deposits $266.7 billion, up 7%; 4,110 Global Private Bank client advisors, up 9%. Fund performance softened: 61% of mutual fund and ETF assets rated 4- or 5-star versus 67%, and 48% ranked in the top two quartiles over one year versus 71%.

Corporate: net income $699 million versus $1.7 billion. Revenue $1.2 billion versus $2.3 billion, NII $1.0 billion, down $625 million on lower rates; NIR $189 million versus $653 million on the absent First Republic gain. Expense $568 million versus $185 million on the absent FDIC accrual release.

Note: in Q1 2026 Risk functions previously aligned to the lines of business were centralized into Corporate, with a corresponding expense allocation back to the segments; prior periods were revised and total noninterest expense was unaffected.

Outlook reaffirmed April 14, 2026

Unchanged from the January guidance, full-year 2026 net interest income of approximately $103 billion and NII excluding Markets of approximately $95 billion, market dependent; adjusted expense of approximately $105 billion, market dependent; Card Services net charge-off rate of approximately 3.4%.

Litigation

The Firm estimates the aggregate range of reasonably possible losses in excess of reserves at $0 to approximately $1.3 billion at March 31, 2026. Material matters:

• Fair Access to Banking. Following the August 2025 Executive Order "Guaranteeing Fair Banking for All Americans," the Firm is responding to government and third-party requests about its policies and provision of services. These include a civil lawsuit filed in January 2026 in Florida state court by President Donald J. Trump in his personal capacity and several affiliated corporate entities against JPMorgan Chase Bank, N.A. and its CEO, which defendants removed to federal court and plaintiffs are challenging.
• Russian litigation. Russian courts have entered judgments against the Firm, including one claim for $439 million (enforcement stayed pending appeal) and another already executed against onshore Russian assets. The total judgments exceed the Firm's available assets in Russia. Courts have ordered interim freezes of Firm assets and allowed plaintiffs to withhold dividends due to the Firm's clients. If further claims are enforced, the Firm's Russian assets could be seized in full and certain client assets could also be seized.
• Interchange litigation. The injunctive-relief class action continues; a superseding amended class settlement was submitted for District Court approval in November 2025. Defendants have settled with opt-out merchants representing over 90% of combined Mastercard- and Visa-branded card sales volume; remaining opt-out actions in the Northern District of Illinois are scheduled for trial in September 2026.
• Cash sweep matters. Consolidated putative class actions in the S.D.N.Y. over interest paid to non-managed brokerage clients; in February 2026 the court largely denied dismissal, leaving express and implied breach of contract claims. State securities regulators have also requested information.
• Amrapali. India's Enforcement Directorate fined J.P. Morgan India Private Limited approximately $31.5 million in August 2021; the Firm is appealing.
• LIBOR/EURIBOR. The EU General Court re-imposed an identical fine after annulling the European Commission's; the Firm's appeal was heard by the Court of Justice in January 2026 with judgment reserved. U.S. dollar LIBOR claims were dismissed with prejudice on summary judgment in September 2025; plaintiffs have appealed.
• Shareholder derivative action relating to historical precious-metals and U.S. Treasuries trading practices was dismissed with prejudice in March 2026.
• Foreign exchange. The only remaining governmental inquiry is a South Africa Competition Commission matter. In December 2025 the U.K. Supreme Court confirmed the denial of opt-out class certification.

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Subsequent events

Events after the March 31, 2026 quarter end. No acquisitions or divestitures were disclosed in this period; the pending Apple Card portfolio purchase described above remains the Firm's only announced portfolio acquisition and is not expected to close until roughly the end of 2027. No purchase price has been disclosed for it, the Firm sizes the deal only by exposure, estimating total credit exposure at closing of approximately $104 billion, including approximately $23 billion of estimated drawn loans, with its RWA impact having fallen to approximately $30 billion at March 31, 2026 from approximately $110 billion at December 31, 2025 as the modeling work was completed.

Visa share exchange, completed, with a $4.6 billion gain. The Form 10-Q disclosed that on April 13, 2026 Visa commenced an exchange offer, expiring May 8, 2026, for any and all outstanding Visa Class B-1 and Class B-2 common stock, with participants receiving a combination of Class B-3 and Class C shares; the Firm had tendered its 18.6 million Visa Class B-2 shares pending Visa's acceptance, with the Class C shares to be recognized at fair value and a gain possible as early as Q2 2026. Per the Form 8-K filed July 14, 2026 (accession 0001628280-26-048078), Visa accepted the Firm's tender on May 11, 2026, producing a $4.6 billion net gain related to Visa shares recorded in Corporate in the second quarter, worth $1.27 of EPS.

Second-quarter 2026 results (Form 8-K filed July 14, 2026, accession 0001628280-26-048078). Net income of $21.2 billion, or $7.70 per share, versus $15.0 billion and $5.24 per share in the second quarter of 2025. Reported revenue $57.3 billion (managed $58.0 billion); expense $27.3 billion; credit costs $2.5 billion with $2.4 billion of net charge-offs and a $149 million net reserve build. Reported ROTCE 29%. Excluding significant items, the $4.6 billion Visa gain and $1.0 billion of gains on certain equity investments ($763 million in Corporate, $263 million in CIB), net income was $16.9 billion, EPS $6.14 and ROTCE 23%. Standardized CET1 14.1%, Advanced CET1 14.2%. Revenue set a record in each line of business: CIB revenue up 27% with Markets revenue up 35% (Equity Markets up 86%, Fixed Income up 6%) and IB fees up 30% to their highest level since 2021; CCB revenue up 8% with Card annual fees up more than 30% and Card Services net charge-off rate of 3.34%; AWM revenue up 19% with $50 billion of long-term AUM net inflows taking AUM to $5.1 trillion. Capital distributions in the quarter were a $1.50 per share common dividend ($4.0 billion) and $6.2 billion of net common repurchases.

Dividend increase and new $50 billion buyback (Form 8-K filed June 24, 2026, accession 0001628280-26-045167). Following the 2026 CCAR cycle, the Board announced it intends to increase the quarterly common dividend to $1.65 per share from $1.50 for the third quarter of 2026, and authorized a new $50 billion common share repurchase program effective July 1, 2026. The Firm's SCB requirement remains 2.5% through September 30, 2027 and its Standardized CET1 requirement including buffers remains 11.5%.

Senior leadership succession (Form 8-K filed June 25, 2026, accession 0000019617-26-000241). On June 25, 2026 the Firm announced that Doug Petno (61) and Troy Rohrbaugh (56), Co-CEOs of the CIB, were elected Co-Presidents of the Firm, effective immediately. Petno becomes sole CEO of the CIB; Rohrbaugh becomes CEO of Consumer & Community Banking. Marianne Lake, the current CEO of CCB, will retire after more than 25 years with the Firm and will assist the transition. The Compensation & Management Development Committee approved one-time Retention and Continuity equity awards on June 24, 2026: $30 million each to Petno and Rohrbaugh, and $20 million each to Mary Erdoes (CEO of AWM) and Jennifer Piepszak (COO). The awards are RSUs that 100% cliff-vest after three years, subject to a performance condition requiring the Firm to achieve a three-year average ROTCE of 12% for calendar years 2026–2028, with a two-year hold on net shares and no vesting on retirement, job elimination or government service.

Annual meeting (Form 8-K filed May 21, 2026, accession 0000019617-26-000228). Held May 19, 2026 with 2,284,422,677 shares represented, or 85.17% of shares outstanding. All 11 director nominees were elected, each with at least 92.37% of votes cast.

Financings and capital-structure actions:

• April 23, 2026 (accession 0001193125-26-173739): closed public offerings totalling $10.0 billion, $500 million Floating Rate Notes due 2030, $2.75 billion Fixed-to-Floating Rate Notes due 2030, $3.0 billion Fixed-to-Floating Rate Notes due 2032, and $3.75 billion Fixed-to-Floating Rate Notes due 2037.
• May 7, 2026 (accession 0001193125-26-211978): issued 300,000 shares of 6.100% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series PP ($10,000 liquidation preference per share, $3.0 billion total), represented by 3,000,000 depositary shares.
• May 27, 2026 (accession 0001193125-26-242018): announced the redemption on June 1, 2026 of all $2.0 billion of its 3.65% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series KK (200,000 shares at $10,000 each).
• June 2, 2026 (accession 0001193125-26-253533): closed a $500 million add-on to the Fixed-to-Floating Rate Notes due 2030 issued April 23, 2026.
• July 23, 2026 (accession 0001193125-26-314128): closed public offerings totalling $9.0 billion, $500 million Floating Rate Notes due 2030, $2.5 billion Fixed-to-Floating Rate Notes due 2030, $3.0 billion Fixed-to-Floating Rate Notes due 2032, and $3.0 billion Fixed-Rate Reset Subordinated Notes due 2041.

Governance: the Board adopted By-law amendments effective April 21, 2026 (Form 8-K accession 0000019617-26-000119) updating the indemnification-advancement provisions in Article IX to require that any advancement of fees or expenses comply with terms and conditions established by the Corporation, and a further amendment to Section 2.03 effective July 21, 2026 (Form 8-K accession 0000019617-26-000288) providing that a Lead Independent Director, if any, shall be appointed by the non-management directors.