By JPMorgan Chase has kicked off the latest US earnings season with an unexpected stumble in one of Wall Street’s biggest revenue lines.
The bank’s investment-banking fees fell in the fourth quarter, even after it had signalled last month that the business was set for a small gain.
The results still showed strength elsewhere, including stronger-than-expected trading revenue and steady growth in loans and net interest income.
The update also arrives as investors prepare for a wave of reports from other large banks over the next two days, setting the tone for how the sector is closing out 2025.
The company reported a 7% decline in profit to $13.03 billion, or $4.63 per share, reflecting a previously disclosed $2.2 billion reserve linked to its takeover of the Apple Card loan portfolio from Goldman Sachs.
Excluding the 60-cent-per-share impact from the transaction, adjusted earnings were $5.23 per share, above analysts’ expectations.
Revenue increased 7% to $46.77 billion, while net interest income also rose 7% to $25.1 billion, broadly in line with market estimates, according to StreetAccount.
Investment banking revenue drops against guidance
JPMorgan generated $2.35 billion in investment-banking fees in the final three months of 2025, down 5% from a year earlier, according to a statement released Tuesday.
The decline was notable because the bank had told investors in December that it expected a percentage gain in the “low single digits.”
The gap between the bank’s guidance and the final figure made the quarterly performance stand out early in results season, particularly as investment banking remains a key indicator for deal activity and corporate financing trends.
The bank’s investment-banking performance was shaped by weaker-than-expected debt underwriting.
JPMorgan said debt-underwriting fees fell 2% in the quarter, while analysts were expecting a 19% increase.
That decline was one of the biggest surprises inside the report, given that debt issuance had been watched closely going into year-end.
The shortfall also helped pull overall investment-banking revenue lower, despite broader expectations that banks would see stronger underwriting momentum.
Trading revenue beats even the highest forecast
While deal fees disappointed, JPMorgan’s trading business delivered a standout quarter.
The bank reported $8.24 billion in fourth-quarter trading revenue, topping even the highest estimate in the analyst survey.
The beat came from both equity trading and fixed-income trading, showing strong market activity through the end of 2025.
The results also highlighted how trading can buffer other parts of the bank when investment banking does not land as expected.
Other megabanks report next as JPMorgan sets the pace
JPMorgan’s results arrive before a packed schedule of earnings from other major lenders.
Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and Morgan Stanley are slated to report on Wednesday and Thursday.
Experts expect the group to post its second-highest annual profit ever, supported by policy shifts under President Donald Trump.
JPMorgan also reported that it earned $57 billion in net income for 2025, falling short of its 2024 record, which was the highest annual profit ever for an American bank.
Loans rise as net interest income stays in focus for 2026
Beyond Wall Street revenue streams, JPMorgan continued to grow its lending business.
In the first three quarters of 2025, the biggest US banks expanded their loan books at the fastest pace since the financial crisis, boosting net interest income across the sector.
For JPMorgan, loans rose 4% in the final three months of the year compared with the previous quarter.
Net interest income increased 7% from a year earlier.
In a presentation on Tuesday, the bank said it expects to generate about $103 billion in net interest income in 2026.
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