- JPM -0.97%
(Bloomberg) -- JPMorgan Chase & Co.’s investment-banking fees unexpectedly fell in the fourth quarter, missing the firm’s own guidance from just last month as revenue from both underwriting and advising on mergers declined.
The biggest US bank generated $2.35 billion from the business in the last three months of 2025, down 5% from a year earlier, according to a statement Tuesday. The firm said in December that it expected a percentage gain in the “low single digits.”
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The shortfall can be attributed partly to deals that had been expected to be completed in the quarter but got pushed into this year, Chief Financial Officer Jeremy Barnum said on a conference call with the media.
Deal timing can have a disproportionate impact on results in any given quarter, Barnum said, but he added that that didn’t account for the entire problem. “Our performance was not what we would have liked,” he said. “You can be assured that we are looking at that.”
JPMorgan kicked off the industry’s latest round of results, with megabank rivals Bank of America Corp., Wells Fargo & Co, Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley slated for Wednesday and Thursday. The group is expected to post its second-highest annual profit ever, boosted by President Donald Trump’s policy changes.
JPMorgan said in a presentation accompanying the results that it expects to earn about $103 billion in net interest income this year, more than analysts expected.
“The U.S. economy has remained resilient,” Chief Executive Officer Jamie Dimon said in the statement. “While labor markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend, and businesses generally remain healthy.”
Dimon said those conditions “could persist for some time.”
WATCH: JPMorgan Chase & Co.’s investment-banking fees unexpectedly fell in the fourth quarter, while the bank delivered results that otherwise mostly beat consensus. Dani Burger reports.Source: Bloomberg With $57 billion of net income for 2025, JPMorgan fell short its 2024 record, which was the highest annual profit in the history of American banking.
Fourth-quarter trading revenue came in at $8.24 billion, ahead of even the highest estimate of analysts in the survey, with both equity and fixed-income traders beating expectations. That capped a series of quarterly windfalls last year that amounted to record full-year revenue for the business.
The investment-banking results were largely driven by a surprise 2% decline in debt-underwriting fees. Analysts expected a 19% gain.
Story continuesShares of the New York-based company fell 2.4% to $316.80 at 9:59 a.m. in New York.
Net Interest Income
In the first three quarters of last year, the biggest banks increased their loan books at the fastest pace since the financial crisis — boosting net interest income. JPMorgan’s loans climbed 4% in the last three months of the year from the previous quarter. NII climbed 7% from a year earlier.
The bank also reiterated that it expects to spend about $105 billion this year. Marianne Lake, who runs the bank’s consumer and community bank, previewed that outlook — which was higher than analysts had been expecting — at an industry conference last month, saying the biggest driver is “volume- and growth-related expenses.”
JPMorgan announced last week that it would replace Goldman as the partner for Apple Inc.’s credit-card business. The transition won’t happen for about two years, but JPMorgan said it would recognize a $2.2 billion provision for credit losses in the fourth quarter tied to the deal.
Dimon said on a call with analysts that the two-year timetable can be attributed to the need to build the technology needed for the integration and embed the business into JPMorgan’s systems.
Overall, the firm increased its pile of money set aside for potentially soured loans by $2.1 billion in the last three months of the year, in line with expectations.
(Updates share price in 12th paragraph. A previous version of this story corrected the title in the third paragraph.)
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