JPMorgan Q3 Stunner: $14.4B Profit, $8B Buyback & 20% ROTCE - Stock Still Slumps

Wall Street giant delivers blockbuster earnings while investors yawn

The Numbers Don't Lie

JPMorgan Chase just posted a staggering $14.4 billion in net income for Q3 2025 - the kind of profit that would make Scrooge McDuck blush. Add in an $8 billion stock buyback program and a 20% return on tangible common equity, and you've got what should be a victory lap.

Market's Cold Shoulder

Yet the stock dipped anyway. Because when you're the biggest bank in America, beating expectations is just meeting them. The market's reaction proves that in traditional finance, even printing money isn't enough to impress everyone these days.

Meanwhile in crypto land, decentralized protocols are quietly eating their lunch with transparent, on-chain yields that don't require quarterly earnings theater.

TLDR

• JPMorgan surges on strong Q3 earnings, fueled by $14.4B net income.
• Record revenue, robust ROTCE, and $12B shareholder return highlight Q3.
• JPMorgan’s CCB shines with 35% ROE as loans and card sales climb.
• Investment banking rebounds, driving JPMorgan’s $46B revenue quarter.
• JPMorgan posts solid growth across units, boosting investor confidence.

JPMorgan Chase & Co. closed Friday at $307.97, rising 2.35% after strong quarterly results. Despite this gain, the stock dipped slightly to $307.18 in pre-market trading, marking a 0.27% decline.

JPMorgan Chase & Co. (JPM)

This shift followed the release of third-quarter earnings, revealing firm-wide net income of $14.4 billion and a 20% return on tangible common equity (ROTCE).

Total reported revenue reached $46.4 billion, while managed revenue stood higher at $47.1 billion. Expenses hit $24.3 billion, bringing both reported and managed overhead ratios to 52%. Credit costs totaled $3.4 billion, driven by $2.6 billion in net charge-offs and an $810 million reserve build.

Average loans increased 7% year-over-year and 3% quarter-over-quarter, signaling sustained credit demand. Average deposits also rose 6% annually and 1% sequentially. The bank reported steady performance across its business lines, reinforcing its leadership in Core financial segments.

Consumer & Community Banking Delivers High Returns

The Consumer & Community Banking (CCB) unit posted a return on equity (ROE) of 35%, highlighting continued momentum. Average loans ROSE 1% both YoY and QoQ, while deposits remained unchanged across both periods. Credit card sales volume grew 9% from the prior year, and the card net charge-off rate was 3.15%.

Active mobile customers grew 7%, reflecting a shift toward digital engagement. CCB maintained its leadership in U.S. retail deposits for the fifth year. The division also added over 400,000 new checking accounts during the quarter.

Despite a 3% decline in Home Lending revenue, Card Services & Auto reported a 12% revenue increase, lifted by higher revolving balances and lease income. Noninterest expenses rose 7%, mainly due to higher marketing and banker compensation. The provision for credit losses stood at $2.5 billion, driven by card growth and macro updates.

Corporate & Investment Banking Sees Strong Market Gains

Corporate & Investment Banking (CIB) delivered $6.9 billion in net income, up 21% from the previous year. Markets & Securities Services revenue rose 24% to $10.4 billion, with Equity Markets up 33% and Fixed Income Markets up 21%. Investment Banking fees gained 16% YoY and 5% QoQ, supported by revived ECM and M&A activity.

Payments revenue increased 13%, with CORE growth partially offset by margin compression. Lending revenue saw a marginal decline of 1%, but deposit balances remained resilient. The provision for credit losses totaled $809 million due to irregularities in secured lending and changes in credit quality.

CIB’s average client deposits rose 15% YoY and 2% QoQ, reflecting a solid capital base. The division achieved a #1 ranking in global investment banking fees with an 8.7% wallet share. Higher pay and brokerage costs drove expense growth of 11%.

Asset & Wealth Management Continues Upward Momentum

The Asset & Wealth Management (AWM) segment recorded $1.7 billion in net income, increasing 23% YoY. Revenue rose 12% to $6.1 billion, supported by record inflows and market gains. Assets under management reached $4.6 trillion, representing an 18% annual increase.

Client assets surged 20% to $6.8 trillion, reflecting growing investor confidence. Higher fees and brokerage activity boosted revenue, while legal costs declined. Noninterest expenses rose 5%, mostly due to higher advisor compensation and team expansion.

The provision for credit losses was $59 million, driven by a single client charge-off. The division’s loan portfolio grew 9% YoY and 4% QoQ. Deposit growth was mixed, with a 2% annual rise and 3% sequential decline.

Capital Actions and Strategic Credit Support Remain Firm Priorities

JPMorgan returned $4.1 billion to shareholders through dividends and repurchased $8.0 billion in stock. The total payout ratio over the last twelve months reached 73%. Book value per share rose 9% YoY to $124.96, and tangible book value per share increased 10% to $105.70.

The bank maintained strong capital levels, with a Basel III CET1 ratio of 14.8% under the standardized approach. The supplementary leverage ratio stood at 5.8%. These figures reflect the institution’s focus on maintaining fortress balance sheet principles.

In credit and capital support, JPMorgan facilitated $2.5 trillion year-to-date, including $205 billion for consumers and $25 billion for U.S. small businesses. The firm also provided $2.2 trillion to corporations and international government entities. An additional $56 billion supported nonprofits and U.S. public sector entities.