On Tuesday, JPMorgan Chase & Co. ( JPM ) kicked off the first-quarter 2026 earnings season with results that beat Wall Street expectations, driven by strong revenue growth and resilient consumer activity.

The bank reported net income of $16.5 billion, or $5.94 per share, up 17% from a year earlier. Adjusted earnings per share also came in at $5.94, surpassing analyst estimates of $5.45.

Managed net revenue rose to $50.5 billion, topping expectations of $49.2 billion.

Earnings Details

Net interest income, excluding Markets, increased 3% year over year to $23.3 billion, supported by higher deposit balances and increased revolving balances in card services.

Noninterest revenue, excluding Markets, climbed 14% to $15.7 billion, driven by asset management fees, auto lease income, and stronger payments and investment banking activity.

Markets revenue jumped 20% to $11.6 billion.

Loan and Deposit Growth

The firm posted a return on equity of 19% and a return on tangible common equity of 23%.

Average loans grew 11% year over year and 2% sequentially, while average deposits increased 7% year over year and 1% from the prior quarter.

Provision for credit losses was $2.51 billion. Net charge-offs totaled $2.3 billion, down slightly, while the net reserve build stood at $191 million.

JPMorgan ( JPM ) returned $4.1 billion in common dividends, or $1.50 per share, and repurchased $8.1 billion in stock during the quarter.

Balance Sheet and Capital

The bank ended the quarter with a Common Equity Tier 1 ratio of 14.3% under the standardized approach.

Total loss-absorbing capacity stood at $572 billion, and the supplementary leverage ratio was 5.6%.

Book value per share rose 8% to $128.38, while tangible book value increased 8% to $108.87.

Management Commentary

Chairman and CEO Jamie Dimon said, "The U.S. economy remained resilient in the quarter, with consumers still earning and spending and businesses still healthy."

Dimon said the economy's resilience is being supported by multiple tailwinds, including stronger fiscal stimulus, deregulation benefits, rising AI-led investment and the Federal Reserve's asset purchases.

However, he cautioned that risks are becoming more complex, citing geopolitical conflicts, volatile energy prices, trade uncertainty, large global deficits and high asset valuations.

While the outcomes remain uncertain, he stressed that these factors are meaningful and underscore the need to prepare for a wide range of scenarios.

“While we cannot predict how these risks and uncertainties will ultimately play out, they are significant and they reinforce why we prepare the Firm for a wide range of environments,” he said.

During the earnings call, CFO Jeremy Barnum said the bank has about $50 billion in private credit exposure within a broader $160 billion exposure to non-bank financial institutions (NBFIs).

He also noted that the persistent U.S. GSIB surcharge is a drag on international competitiveness. At the same time, consumer spending growth continues to outpace last year's levels, while client engagement and investment banking pipelines remain strong.

Barnum added that developments in the Middle East could affect deal timing and execution. Looking ahead, he said the bigger concern would be how a future credit cycle stress might ripple through the broader financial system.

Segment Performance

Consumer & Community Banking posted net income of $5.0 billion, up 12%, on revenue of $19.6 billion.

Commercial & Investment Bank profit surged 30% to $9.0 billion, with revenue rising 19% to $23.4 billion, led by strength in Markets and Banking & Payments.

Asset & Wealth Management reported net income of $1.8 billion, up 12%, as assets under management reached $4.8 trillion.

Outlook

JPMorgan ( JPM ) expects fiscal 2026 net interest income of about $103 billion, or $95 billion excluding Markets.

The firm also projects a card services net charge-off rate of roughly 3.4%.

JPM Price Action: JPMorgan Chase ( JPM ) shares were down 0.05% at $313.51 at the time of publication on Tuesday, according to Benzinga Pro data.