- Q4 2025 Net Income JPMorgan reported $13 billion net income with EPS of $4.63 and ROTCE of 18%, driven by 7% YoY revenue growth to $46.8 billion.
- Full-Year 2025 Performance Net income reached $57.5 billion (EPS $20.18) with revenue of $185 billion and ROTCE of 20%, despite a 30-basis-point CET1 ratio decline to 14.5%.
- Business Segment Highlights CIB (net income $7.3B, +10% revenue), AWM ($1.8B, +13% revenue), and DCP ($3.6B, +6% revenue) led growth, supported by markets, fees, and deposit margins.
- 2026 Guidance NII from markets expected at $95 billion (total $103 billion) with expenses projected at $105 billion, reflecting investments in AI, tech, and global expansion.
Business Performance
The firm's business segments performed well, with DCP reporting net income of $3.6 billion, CIB reporting net income of $7.3 billion, and AWM reporting net income of $1.8 billion. Revenue growth was driven by higher NII on card and deposit margin, markets revenue, payments, and security services. The firm expects strong client engagement and deal activity in 2026, supported by constructive market dynamics.
Outlook and Guidance
The firm expects NII in its markets to be about $95 billion in 2026 and total NII to be about $103 billion. Expenses are expected to be about $105 billion, reflecting investments across businesses. The firm is optimistic about its investment banking fees, markets, and wealth management businesses, but cautious about regulatory risks, including potential caps on credit card APRs.
Valuation
With a P/TBV ratio of 2.4 and a Dividend Yield of 1.87%, JPMorgan Chase's valuation appears reasonable. The ROE of 15.95% suggests that the bank is generating strong returns on equity. Analysts estimate next year's revenue growth at 4.5%, which is slightly higher than the current P/S Ratio of 3.3.
Credit and Deposit Growth
The bank's credit environment remains stable, with charge-offs slightly elevated but largely already provisioned for. Deposit growth is expected to be modest in 2026, with wholesale deposit growth expected to be lower than the 6% scenario presented at Investor Day. The Fed's plan to buy $40 billion/month in T-bills will add liquidity to the system, primarily impacting wholesale deposits.
Investment and Innovation
The company plans to continue investing in its businesses, with a focus on long-term growth over short-term expense targets. Management believes that JPMorgan Chase will stay ahead of the competition by investing in technology and innovation, including AI, and expanding its presence globally.