JPMorgan Chase & Co.

Strong quarterly performance; but hit by securities losses and higher expenses - Net income $15.3B, EPS $5.57, ROTCE 20%. - Revenue $50.9B (+8% YoY), but includes $658M net investment securities losses (Corporate); ex-loss revenue was +9% YoY. - Expenses $27.3B (+12% YoY) driven by volume/revenue-related expense, plus front-office hiring and wage inflation. - Credit: $2.7B credit costs; net charge-offs $2.2B; net reserve build $539M.

Capital position softened; capital distributions/buybacks lower than “normal cadence” - Standardized CET1: 13.9%, down 30 bps QoQ (net income offset by OCI losses, higher RWA, and capital distributions). - Buyback reduced to ~$1B vs typical ~$7B cadence—management says it’s not about Basel III/AOCI timing, but about redeploying “excess capital” at attractive returns and holding “dry powder” given RWA/capital uncertainty. - Capital priorities reiterated: dividend first, then organic growth, then buybacks last; management noted they can redeploy capital (citing very large and ongoing initiatives like Security Resilience / chip-related funding).

Guidance: NII outlook (2026 Q4 + central 2027 case) and credit expectations - Q4 expected NII ex-markets ~ $25.5B, total NII ~ $28B. - For 2027, provided a central case NII ex-markets ~ $107B (high uncertainty). - Bridge explanation: annualizing Q4 guidance implies ~$102B, so ~$5B growth to reach $107B. - About ~$1.25B (~quarter) tied to yield curve/forward rate moves; remainder largely balance-sheet growth/mix trends (consumer/wholesale deposits and card loans). - Card credit quality: expects card net charge-off rate ~3.2%.