JP Morgan Chase & Co.

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's third quarter 2026 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. Information concerning forward-looking statements and non-GAAP financial measures included in this presentation can be found in JPMorgan Chase's earnings press release and investor presentation posted on the Investor Relations website. Please stand by. At this time, I would 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 very much, and good morning, everyone. The firm delivered net income of $15.3 billion, EPS of $5.57, and an ROTC of 20%. These results included $658 million of net investment securities losses in corporate. Revenue of $50.9 billion was up 8% year-on-year. Excluding the net investment securities losses, revenue was up 9% year-on-year, largely driven by markets revenue, higher deposit balances, and higher asset management fees and AWM and CCB. Expenses of $27.3 billion were up 12% year-on-year, largely driven by higher volume and revenue-related expense, as well as front office hiring and wage and and credit costs were $2.7 billion with net charge-offs of $2.2 billion and a net reserve bill of $539 million. In terms of the balance sheet, we ended the quarter with a standardized CT1 ratio of 13.9% down 30 basis points versus the prior quarter as net income was more than offset by OCI losses, higher RWA and capital distributions. You'll note that we've updated the categories on the RWA walk to make it a bit more useful. This quarter's standardized RWA increase of about $52 billion is predominantly driven by an increase in lending across banking, markets, and AWM, as well as the impact of higher energy prices and increased market volatility. Now moving to our businesses, CCB reported net income of $5.7 billion. Revenue of $21.2 billion was up 9% year-on-year, predominantly driven by higher balances in yield and card, asset management fees, deposit balances, and auto lease income. A few points to highlight. Debit and credit spend grew 10% year-on-year with continued momentum across spending categories, including gas and travel, supported by consumer demand. Deposit growth of 4% year-on-year was stronger this quarter as we continued to grow our customer base across consumer and business banking, and we retained our number one position in retail deposit share based on FDIC data. And client investment assets crossed $1.4 trillion, up 15% year-on-year, Driven by market performance and strong flows. Next, the CIB reported net income of $8.2 billion. Revenue of $22.7 billion was up 14% year-on-year on strong performance across the businesses. IB fees were up 14% year-on-year, reflecting strong performance across products, notably in advisory. While our outlook remains constructive, supported by ongoing client engagement, evolving market conditions have recently slowed activity a bit, So we'll have to see how the quarter develops. In markets, fixed income was down 4% year-on-year with lower revenues in commodities, rates, and credit, largely offset by higher client flows in currencies and emerging markets. Equities was up 49% year-on-year with continued outperformance across the franchise, notably in prime and derivatives. Turning to asset and wealth management, AWM reported net income of $1.8 billion with pre-tax margin of 36%. were all up 14% year-on-year, predominantly driven by growth management fees on the higher average market levels, strong net inflows, as well as higher loan balances. Long-term net inflows were 51 billion, largely driven by continued strength and fixed income. AUM of 5.2 trillion was up 13% year-on-year, and client assets of 7.9 trillion were up 15% year-on-year, driven by continued net inflows and higher market levels. Corporate reported a net loss of $455 million, which included the net investment securities losses mentioned earlier on revenue of $93 million. Turning to the outlook, I'm going to update the full year guidance by giving you the fourth quarter. The implied full year numbers are on the page. We expect fourth quarter NIIX markets to be approximately $25.5 billion and fourth quarter total NII to be about $28 billion. and as we've done for a couple years, you'll note we gave you a central case for 2027 NAIX markets of approximately $107 billion, which will refine for their next quarter. It's important to remember that this central case is based on a series of assumptions that are obviously highly uncertain, even under the best of circumstances. On expense, we expect the fourth quarter to be about $27.5 billion, with the implied full-year increase reflecting higher volume and revenue-related expense Driven by continued elevated activity levels. Finally, we continue to expect the card net charge-off rate to be approximately 3.2%. With that, we're now happy to take your questions, so let's open the line for Q&A.

Thank you. For participants dialed in on the analyst side of today's conference call, if you would like to ask a question, please press star 1 to be entered into the queue. We kindly request that you ask one question and only one related follow-up. If you would like to ask an additional question, please press star 1 to be re-entered into the queue. Our first question comes from Ibrahim Poonawallabh with Bank of America. Your line is open. Ibrahim Poonawallabh with Bank of America. Your line is open.