JPMorgan Chase Reports Record Q2 2026 Earnings Amid Strong NII Growth
JPMorgan Chase & Co. (JPM) is heading into the next earnings season with investors closely watching its net interest income (NII), a key metric for the bank's profitability. In Q2 2026, the bank reported record quarterly profit, with net income reaching $21.2 billion, or $7.70 per diluted share, up from $14.9 billion, or $5.24 per share, in Q2 2025. Revenue for the quarter was $57.3 billion, with managed revenue at $58.0 billion. The quarter included significant items such as a $4.6 billion net gain from Visa shares and $1.0 billion in gains from other equity investments. Excluding these, net income was $16.9 billion, or $6.14 per share.
Net interest income remained a cornerstone of the bank's performance, with firmwide NII at $25.6 billion in Q2 2026, up 10% year-over-year. Excluding markets, NII was $23.7 billion, up 4%. Average loans increased by 10%, while average deposits rose by 7%. Capital markets also played a significant role, with investment banking fees up 30% to $3.3 billion and markets revenue up 35% to $12.1 billion, driven by strong performances in equity and fixed income markets.
Revenue diversification was evident across different segments. Consumer & Community Banking net income increased by 3% to $5.3 billion, while Commercial & Investment Bank net income surged by 46% to $9.7 billion. Asset & Wealth Management net income rose by 33% to $2 billion. However, expense growth posed a challenge, with noninterest expense up 15% to $27.3 billion. Despite this, the bank maintained a strong return on tangible common equity of 29%, or 23% excluding significant items.
Credit conditions remained manageable, with a provision for credit losses of $2.5 billion, including $2.4 billion in net charge-offs and a $149 million net reserve build. The card services net charge-off rate was 3.34%. The bank's capital position was robust, with a CET1 ratio of 14.1% under the standardized approach and 14.2% under the advanced approach. JPMorgan announced a $50 billion common share repurchase program and plans to increase its quarterly dividend to $1.65 per share for Q3 2026.
Looking ahead, investors should monitor NII guidance, which was raised to about $105.5 billion for 2026, with NII excluding markets expected to be around $96.5 billion. The sustainability of capital markets revenue and credit trends will also be crucial. The bank's strong capital position provides flexibility, but continued earnings resilience will be essential to support its capital returns.