JPMorgan Chase & Co. reported fourth-quarter results that exceeded analysts’ expectations, driven by a strong performance from its markets business as volatility increased client activity. The bank said markets revenue rose 17% in the final three months of 2025, with equities trading particularly strongly. Equities revenue rose 40%, driven by higher activity in areas such as prime brokerage, while fixed income revenue increased 7%.
Market swings late in the year were fueled by shifting investor expectations and a reassessment of risk after a long rally in high-growth stocks. That environment tends to favor large dealers with scale, as more trading and hedging flows move through major platforms.
On a reported basis, the bank posted quarterly profit of $13.03 billion, or $4.63 per share, according to results also described by AP.
One-Time Reserve Tied to Apple Card Transition
The headline drag on the quarter came from a one-time build in reserves linked to the Apple Card business. JPMorgan took a $2.2 billion charge related to its agreement to replace Goldman Sachs as the issuer and take over the credit card portfolio. That reserve build reduced reported earnings, even as underlying operating trends were stronger.
Excluding the one-time impact, AP reported that adjusted profit would have been $14.7 billion, or $5.23 per share, implying the reserve effect lowered per-share earnings by roughly 60 cents.
The move follows the unwinding of the prior partnership between Apple and Goldman Sachs, which the companies announced in 2023 would come to anend. In a separate Reuters report about the transaction, the shift was framed as a significant change in the consumer finance landscape, with accounting and reserve impacts affecting the incoming and outgoing issuers differently.
Investment Banking Softens as Lending Income Rises
Outside trading, the quarter showed a more mixed picture. JPMorgan reported investment banking fees that were down 5% from the year-earlier period, reflecting softer dealmaking momentum after a stretch of elevated activity. Even so, the bank maintained its leading position in global investment banking, highlighted by notable transactions and underwriting work throughout the year.
The bank also highlighted continued resilience in core lending revenue. Net interest income rose 7% to $25.1 billion, supported by loan growth even as expectations for interest-rate moves remained uncertain. Average loans grew by 9%, and the bank projected 2026 net interest income (excluding market-related activities) of approximately $95 billion.
Shares moved in different directions across reports and time windows: Reuters noted gains in premarket trading after the release, while other outlets described a pullback during the session as investors digested the reserve build and forward cost signals.
Policy Backdrop Adds Focus to Credit Economics
The Apple Card expansion arrives as credit card lenders face renewed scrutiny from politicians and regulators. Reuters reported that President Donald Trump proposed a 10% cap on credit card interest rates, a policy idea that analysts said would likely require congressional action and could face significant hurdles.
Industry groups have warned that interest-rate caps could restrict access to credit for consumers and small businesses, potentially directing some borrowing toward less regulated channels. Against that backdrop, the economics of large card portfolios—and the reserves held against potential losses—are likely to remain a focal point for both banks and investors as 2026 unfolds.
