JPMorgan Chase's Q3 2025: Contradictions Emerge on Deposit Growth, Consumer Credit Outlook, and Reserve Strategies

The above is the analysis of the conflicting points in this earnings call

Business Commentary:

• Revenue and Market Performance:
• JPMorgan Chase reported net income of $14.4 billion and EPS of $5.07 for Q3 2025, with revenue of $47.1 billion, up 9% year-on-year.

• The increase in revenue was driven by higher markets revenue, fees across asset management, investment banking, and payments, and a 17% increase in revenue in Consumer & Business Banking.

• Credit Metrics and Performance:

• Credit costs were $3.4 billion with net charge-offs at $2.6 billion and a net reserve build of $810 million.

• Wholesale charge-offs were slightly elevated due to apparent fraud in certain secured lending facilities, while credit performance in both Wholesale and Consumer segments remained in line with expectations.

• Balance Sheet and RWA Growth:

• The CET1 ratio ended the quarter at 14.8%, down 30 basis points from the prior quarter, primarily due to increases in wholesale lending across Banking and Markets.

• The higher RWA was driven by increases in wholesale lending activities, impacting the leverage ratio and capital requirements.

• Asset & Wealth Management Growth:

• Asset & Wealth Management reported net income of $1.7 billion with pretax margin at 36% and record revenue of $6.1 billion, up 12% year-on-year.
• Growth was driven by strong net inflows in fixed income and equities, leading to an increase in assets under management to $4.6 trillion.