JPMorgan Chase & Co.

Core results beat on profitability; revenue up, expenses up faster; credit costs contained - Net income $15.3B, EPS $5.57, ROTCE 20%. - Revenue $50.9B (+8% YoY), but included $658M net investment securities losses (Corporate). Excluding that drag, revenue +9% YoY. - Expenses $27.3B (+12% YoY) driven by volume/revenue-linked expense, plus front-office hiring and wage inflation. - Credit costs $2.7B with net charge-offs $2.2B and net reserve build $539M (suggesting some reserve cushioning vs. charge-offs).

Balance sheet/capital: CET1 down due to OCI/RWA/capital distributions; but still “dry powder” - Standardized CET1 13.9%, down 30 bps QoQ (net income offset by OCI losses, higher RWA, and capital distributions). - Standardized RWA increased ~$52B (new categories updated), driven by lending growth (CCB/CIB/AWM) plus higher energy prices and increased market volatility. - Management framed this as sufficient capital capacity (about “$30B” excess capital estimate), implying continued capital flexibility even with regulatory uncertainty (Basel III endgame).

Full-year framing via Q4 and guidance: NII growth depends on yield curve + balance sheet growth; uncertainty elevated - Q4 NII ex-markets ~ $25.5B; Q4 total NII ~ $28B. - 2027 central case NII ex-markets ~ $107B (with explicit caveats that it’s uncertain). - Implied ~$5B growth from annualizing Q4’s NII ex-markets. - ~25% attributed to yield curve / current hikes in the forward curve; remainder described as balance sheet growth + mix (consumer/wholesale deposits, card loan growth). - Expenses outlook: Q4 ~ $27.5B (driven by elevated activity and revenue-volume-linked costs); 2027 expense consensus ~ $114B, management said their preliminary read is “not too far off.” - Card credit expectation: net charge-off rate ~3.2%.