JP Morgan Chase & Co.

The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly. The JPMorgan Chase earnings call will begin shortly.

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's third quarter 2025 earnings call. This call is being recorded. Your line will be muted for the duration of the call. We will now go live to the presentation. The presentation is available on JPMorgan Chase's website. Please refer to the disclaimer in the back concerning forward-looking statements. Please stand by. At this time, I would now like to turn the call over to JPMorgan Chase's Chairman and CEO, Jamie Dimon, and Chief Financial Officer, Jeremy Barnum. Mr. Barnum, please go ahead.

Thank you, and good morning, everyone. Let me begin by noting that this quarter we are experimenting with shorter prepared remarks. We're streamlining this part of the call to move more quickly to your questions and to minimize the amount of time spent on repeating what you have already seen in the earnings So with that, turning to this quarter's results, the firm reported net income of $14.4 billion and EPS of $5.07 with an ROTC of 20%. Revenue of $47.1 billion was up 9% year-on-year, predominantly driven by higher markets revenue, as well as higher fees across asset management, investment banking, and payments. The increase in NII driven by the impact of balance sheet growth and mix was offset by the impact of lower rates. Expenses of $24.3 billion were up 8% year-on-year, driven by similar themes as in prior quarters, including higher volume and revenue-related expense. The detailed drivers are in the presentation. And credit costs were $3.4 billion, with net charge-offs of $2.6 billion and a net reserve bill of $810 million. In wholesale, charge-offs were slightly elevated as a result of a couple of instances of apparent fraud in certain secured lending facilities. Otherwise, in both wholesale and consumer, credit performance remains in line with our expectations. And in terms of the balance sheet, we ended the quarter with a CT1 ratio of 14.8%, down 30 basis points versus the prior quarter. You can see the puts and takes in the presentation. This quarter's higher RWA is primarily driven by increases in wholesale lending across both banking and markets, as well as other markets' activities. Moving to our businesses, CCB reported net income of $5 billion. Revenue of $19.5 billion was up 9% year-on-year, predominantly driven by higher NII, largely incurred on higher revolving balances. A few points to highlight. Consumers and small businesses remain resilient based on our data. While we are closely watching the potentially softening labor market, our credit metrics, including early-stage delinquencies, remain stable and slightly better than expected. We retained our number one position in retail deposit share in a relatively flat deposit market based on FDIC data, marking our fifth consecutive year leading the industry. And in light of the attention our Sapphire refresh has received, we want to note that this has already been the best year ever for new account acquisitions for our Sapphire portfolio. Next, the CIB reported net income of $6.9 billion. Revenue of $19.9 billion was up 17% year-on-year, driven by higher revenues across markets, payments, investment banking, and security services. To give a bit more color, IB fees were up 16% year-on-year, reflecting a pickup in activity across products with particular strength in equity underwriting as the IPO market was active. Our pipeline remains robust, and the outlook, along with the market backdrop and client sentiment, continues to be upbeat. In markets, fixed income was up 21% year-on-year with higher revenues and rates in credit, as well as strong performance in securitized products. Equities was up 33% from robust client activity across the franchise with notable outperformance in prime. Turning to asset and wealth management, AWM reported net income of $1.7 billion with pre-tax margin of 36%. Record revenue of $6.1 billion was up 12% year-on-year, predominantly driven by growth in management fees due to long net inflows and higher average market levels, as well as higher brokerage activity. Long-term net inflows were $72 billion for the quarter, led by fixed income and equities. AUM of $4.6 trillion was up 18% year-on-year, and client assets of $6.8 trillion were up 20% year-on-year, driven by continued net inflows and higher market levels. And before turning to the outlook, Corporate reported net income of $825 million and revenue of $1.7 billion. In terms of the outlook, since we've already reported three quarters of results, I'm going to update the full-year guidance in terms of the fourth quarter. And in addition to that, we've done the implied full-year math on the page. You can easily compare it to previous guidance. We expect fourth quarter NII X markets to be approximately $23.5 billion and fourth quarter total NII to be about $25 billion. We expect fourth quarter adjusted expense to be approximately $24.5 billion, implying $95.9 billion for the full year, with the increase driven by the stronger revenue environment. And on credit, we now expect the 2025 card net charge-off rate to be approximately 3.3% on favorable delinquency trends driven by the continued resilience of the consumer. In keeping with our focus on the fourth quarter and recognizing that you'll likely annualize the fourth quarter NII and ask us questions about 2026, we're providing the central case for NII ex-markets in 2026, which is about $95 billion. Note that this is a preliminary view subject to the usual caveats, as well as the fact that we have not finished the annual budget cycle yet. And for expenses, completing the budget cycle will be even more important which is why we are not providing an update today. While you probably haven't spent a lot of time refining your 2026 estimates yet, it is worth saying that when we look at the fourth quarter and adjust for seasonality and expected labor inflation, as well as adding some growth, the consensus of about $100 billion does look a little bit low. We will formally provide the 2026 outlook for NII, expense, and card and CO rate at fourth quarter earnings, and we'll have another opportunity to discuss the outlook at our recently announced company update in February. We're now happy to take your questions, so let's open the line for Q&A.