JPMorgan Chase (JPM) Q3 2026: Deposits Drive Net Interest Income Higher

JPMorgan Chase (JPM) third-quarter 2026 results, released on October 13, 2026 in its 8-K earnings materials and on the earnings call, confirmed that deposit-driven net interest income is still growing and strengthened the overall view of the company [1][2][3]. Four questions had framed the company before this report: whether deposit-led growth in net interest income could continue, where markets and investment banking revenue would settle after a peak, whether AI efficiency gains would stay in JPMorgan's own profit, and whether credit card losses had peaked. In the quarter ended September 30, deposits and net interest income grew together for a second straight quarter, card losses fell but a peak is not yet confirmed, and Commercial & Investment Bank revenue fell from its second-quarter high while staying above last year [2]. Expenses grew faster than revenue, and management said AI benefits are not yet visible; the company also cut share buybacks sharply and shifted capital toward loan growth, with the return on that redeployment still unproven [1][3].

JPMorgan Chase is a New York-based global financial services firm whose businesses span consumer banking, investment banking, market making, payments and asset management [4]. It earns net interest income from the spread on its deposit and loan balances, and noninterest revenue from market making, investment banking, asset management and payments and card fees [4].

Deposit-driven net interest income grew for a second quarter

Net interest income excluding Markets kept accelerating in the third quarter. This measure strips out market-making activity; it was $24.7 billion ($24,726 million), up 6% year over year, faster than the 4% growth in the second quarter [2]. Average deposits in Banking & Wealth Management were $1,078.9 billion, up 4% year over year, and the deposit margin widened for a second straight quarter to 2.78%, from 2.63% in the first quarter and 2.70% in the second [2]. The company attributed the growth to higher deposit, card and wholesale loan balances, partly offset by the impact of lower rates [1].

Customer growth and a higher outlook support this reading. JPMorgan added over 650,000 net new checking accounts in the quarter [1]. The company expects fourth-quarter net interest income excluding Markets of about $25.5 billion; added to the first three quarters, that implies roughly $97.2 billion for the full year, above the about $96.5 billion outlook given in the second quarter [3][5]. The company's 2027 central case of about $107 billion is roughly $5 billion above the annualized fourth-quarter level, and about a quarter of that increase comes from expected rate hikes [3].

Higher interest rates are the main risk. The chief financial officer said rate hikes could push money into CDs, raising the average rate paid and weakening deposit growth, while noting that this view is speculative [3]. Average deposits were essentially flat from the prior quarter [2].

Credit card losses fell sharply

The Card Services net charge-off rate dropped sharply in the third quarter. It was 2.91%, down 43 basis points from 3.34% in the second quarter and down 24 basis points from a year earlier [2]. Average card loans rose 7% year over year, yet card net charge-offs fell 1% to $1.833 billion, so the improvement did not come only from loan growth diluting the ratio [2].

A peak still needs confirmation next quarter. The 30+ day delinquency rate was 1.97%, up 6 basis points from the prior quarter but below the year-earlier level [2]. The company kept its full-year card net charge-off rate outlook at about 3.2%, against 3.23% for the first nine months, which implies management expects a fourth-quarter rate above the third quarter's [2][3]. Consumer & Community Banking credit costs fell 20% year over year, mainly because of a smaller reserve build, which should not be read as a lasting decline in losses [1].

Investment bank revenue fell from its peak but stayed above last year

Commercial & Investment Bank revenue fell from its second-quarter high but remained above the prior year. The segment reported revenue of $22,734 million, down 9% from the prior quarter and up 14% year over year [1]. Equity Markets revenue rose 49%, driven mainly by Prime and Derivatives, while Fixed Income Markets revenue fell 4% [1]. Investment Banking revenue rose 15% year over year, slower than the 45% growth in the second quarter [2].

Whether this level holds in the fourth quarter is uncertain. Management said investment banking activity slowed in the second half of September after rates moved higher, and its base case for Markets is a normal seasonal decline in the fourth quarter [3]. Segment net income was $8,247 million, up 20% year over year and down 15% from the prior quarter, partly because of higher credit provisions [1].

Conclusion

The quarter strengthened the view of JPMorgan's growth engine: deposit-driven net interest income grew for a second quarter and the full-year outlook moved higher, while card losses fell but with only one quarter of data. Profit conversion is still held back by expenses. Expense rose 12% year over year, faster than revenue, and the overhead ratio rose to 54%; based on the fourth-quarter outlook of about $27.5 billion, full-year expense comes to roughly $109 billion, above the about $107.5 billion outlook given in the second quarter [1][2][3][5]. On capital creation, share repurchases fell to $1,057 million, down 84% from the prior quarter, standardized risk-weighted assets rose by about $52 billion in the quarter, and the CET1 ratio fell to 13.9% [2][3]. The next quarter will show whether deposits keep growing as rates rise, whether card charge-off rates keep falling year over year, and whether loan growth produces revenue commensurate with the capital it consumes.

Sources

[1] JPM 8-K filed 2026-10-13 Exhibit 99.1, 2026-10-13, JPMorgan Chase Form 8-K third-quarter earnings release, https://www.sec.gov/Archives/edgar/data/19617/000162828026065582/a3q26erfexhibit991narrative.htm [2] JPM 8-K filed 2026-10-13 Exhibit 99.2, 2026-10-13, JPMorgan Chase Form 8-K earnings release financial supplement, https://www.sec.gov/Archives/edgar/data/19617/000162828026065582/a3q26erfex992supplement.htm [3] JPM Q3 2026 earnings call 2026-10-13, 2026-10-13, JPMorgan Chase third-quarter earnings call, https://www.jpmorganchase.com/ir/quarterly-earnings [4] JPM 10-K filed 2026-02-13, 2026-02-13, JPMorgan Chase Form 10-K annual report, https://www.sec.gov/Archives/edgar/data/19617/000162828026008131/0001628280-26-008131-index.htm [5] JPM Q2 2026 earnings call 2026-07-14, 2026-07-14, JPMorgan Chase second-quarter earnings call, https://www.jpmorganchase.com/ir/quarterly-earnings