JPMorgan Chase reported record second-quarter 2026 net income of $21.2 billion, or $7.70 per share, powered by a $4.6 billion gain on its Visa stake and the strongest markets revenue in the bank's history. The New York-based lender said in its earnings release that managed revenue rose 27% year-on-year to $58.0 billion, the highest quarterly total it has ever recorded. Chair and chief executive Jamie Dimon said performance was strong across the firm, with revenue in each line of business hitting a new record.
Stripping out significant items, notably the Visa-related gain and other one-off adjustments, net income was $16.9 billion and earnings per share came in at $6.14. Return on tangible common equity, a headline profitability gauge, stood at 23% on the same underlying basis, comfortably above the 17% level the firm has previously described as its through-the-cycle target. Net income was up 41% from a year earlier, or 13% excluding significant items, which also included $1.0 billion of gains on certain equity investments.
MARKETS AND LENDING DRIVE THE BEAT
Trading was the standout line for the quarter, with markets revenue up 35% to $12.1 billion as Equity Markets revenue jumped 86% on elevated client activity, strong trading performance and continued demand for financing. Investment banking fees also jumped 30% to $3.3 billion, their highest level since 2021. Fixed Income Markets revenue rose a more modest 6%.
Net interest income of $25.6 billion was up 10% on the prior year, with net interest income excluding Markets up 4% on higher deposit balances, higher card revolving balances and higher wholesale loan balances, largely offset by the impact of lower rates. The provision for credit losses was $2.5 billion, with net charge-offs of $2.4 billion and a net reserve build of $149 million, while noninterest expense rose 15% to $27.3 billion, driven mainly by higher compensation.
GUIDANCE RAISED FOR FULL YEAR
JPMorgan raised its full-year 2026 net interest income guidance to about $105.5 billion, market dependent, from about $103 billion previously.
Dimon said risks including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices were "shifting below the surface like tectonic plates". In the quarter JPMorgan paid a common dividend of $4.0 billion, or $1.50 per share, and made $6.2 billion of net common stock repurchases.
The report kicks off the second-quarter reporting season for the biggest US lenders, with Citigroup, Wells Fargo and Bank of America also scheduled to release results the same day.