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Earlier this month, JPMorgan and Apple struck a deal under which the bank became the new issuer of the iPhone maker’s card.Andrew Kelly/Reuters
JPMorgan Chase’s JPM-N profit exceeded analysts’ estimates in the fourth quarter on Tuesday as its traders cashed in on volatile markets.
Markets swung sharply in the last three months of 2025 as concerns about a bubble in AI stocks intensified after two years of broad gains. CEO warnings that equities were due for a correction also encouraged investors to rebalance their portfolios.
“The U.S. economy has remained resilient,” CEO Jamie Dimon said in a statement. “While labor markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend, and businesses generally remain healthy.”
Markets revenue at JPMorgan climbed 17 per cent in the fourth quarter, as equity surged 40 per cent, driven by higher revenue across products, particularly in Prime. Fixed income climbed 7 per cent.
The prime brokerage business on Wall Street has benefited from surging valuations of companies across sectors.
Bond markets also remained jittery as uncertainty persisted around when and how much the U.S. Federal Reserve would cut rates.
Meanwhile, average loans climbed 9 per cent in the quarter.
The bank’s shares were last up 0.5 per cent in volatile premarket trading following the results. The stock surged 34.4 per cent in 2025, outperforming the broader equity markets.
“I wouldn’t expect a whole lot out of JPM stock today, as the stock is coming off a great year where the bar for perfection is set pretty high,” said David Wagner, head of equities and portfolio manager at Aptus Capital Advisors, which holds shares of the bank.
“Today’s strong results reflect that the bar can be met, but a lot is currently priced into the stock.”
The largest U.S. bank earned US$5.23 per share in the quarter ended Dec.31, on an adjusted basis, beating Wall Street expectations of US$5, according to estimates compiled by LSEG.
JPMorgan recorded a US$2.2-billion provision in the reported quarter tied to its agreement with Goldman Sachs GS-N to take over a credit card partnership with Apple AAPL-Q.
JPMorgan’s investment banking fees fell 5 per cent in the quarter, easing from a bumper prior year when a surge in deal activity helped lift the bank to its highest-ever annual profit.
Bankers are optimistic that a pickup in dealmaking will continue through 2026, driven by record-high equity markets and expectations of interest rate cuts.
“Investment banking was a bit disappointing but expect forward commentary to be more constructive, while average loan growth accelerating bodes well for the lending side,” said Stephen Biggar, an analyst at Argus Research.
The U.S. IPO market reached its highest level in 2025 since the 2021 peak, in terms of both deal volume and funds raised.
JPMorgan worked on several high-profile transactions during the quarter, including advising Warner Bros. Discovery on the US$82.7-billion deal for its studio and streaming assets with Netflix, and Kimberly-Clark on its US$48.7-billion acquisition of Kenvue.
It was also a lead underwriter on medical supplies giant Medline’s IPO, the largest listing globally in 2025.
JPMorgan extended its run as the world’s top investment bank, earning the highest fees for the year, according to data from Dealogic.
Net interest income – the difference between what a bank earns as payments on loans and gives out on deposits – rose 7 per cent in the fourth quarter to US$25.1-billion.
While lower rates can dent interest income, they can also encourage borrowing. The bank expects 2026 interest income, excluding markets, of about US$95-billion.
Large lenders, including JPMorgan Chase and Bank of America, provide a gauge of the U.S. economy, shedding light on consumer spending, borrowing and business activity.
Rivals are set to report results later this week, giving investors a broader view into the health of the economy.
The bank’s deal with Goldman to issue Apple’s card is expected to strengthen JPMorgan’s foothold in credit cards and add to a long list of strategic wins for Dimon, who has turned the bank into a leading player across retail and investment banking.
The deal comes at a critical juncture for the credit card industry, which could face a sharp shift if a proposal by U.S. President Donald Trump to cap interest rates at 10 per cent moves forward. While Trump has said he expects companies to comply by Jan. 20, Wall Street analysts remain doubtful the measure can be implemented without congressional approval.
A banking industry body warned last week that the move could tighten access to credit for consumers and small businesses and drive borrowers toward unregulated lenders.
