JPMorgan Chase has delivered another strong financial quarter, but unexpected costs tied to its takeover of Apple’s credit card business weighed on profits, causing headline earnings to fall short of expectations.
JPMorgan CEO Jamie Dimon addresses market risks amid the bank’s Apple Card earnings impact. (Source: Yahoo)
The bank said Tuesday that fourth-quarter net income reached $13 billion, down from what would have been $14.7 billion if not for $2.2 billion in credit loss provisions linked to its newly acquired Apple Card portfolio from Goldman Sachs.
While JPMorgan exceeded Wall Street earnings per share forecasts on an adjusted basis, the Apple Card impact reduced reported results and highlighted the financial risks attached to absorbing one of the world’s largest consumer credit programs.
Apple Card acquisition hits earnings
JPMorgan posted earnings per share of $4.63, compared with analysts’ expectations of about $4.85. However, excluding the Apple Card-related credit charge earnings would have reached $5.23, beating market forecasts.
JPMorgan takes over the Apple Card portfolio, resulting in a $2.2 billion credit loss provision
The bank recently agreed to take over Apple’s massive credit card business from Goldman Sachs, giving JPMorgan access to millions of iPhone-linked customers but also exposing it to higher consumer credit risk at a time when household debt levels remain elevated.
Investors responded cautiously. JPMorgan shares moved higher early in the session before settling lower as broader bank stocks declined.
Dimon says markets are underestimating danger
Chief executive Jamie Dimon acknowledged that the US economy has remained resilient but warned that financial markets may be misjudging the scale of global risks ahead.
Consumers are still spending, and businesses remain in generally solid shape, Dimon said in the earnings statement. However, markets appear to underappreciate a range of hazards, including geopolitical instability, persistent inflation pressure,s and asset prices that remain stretched.
His comments come as investors grapple with uncertainty around interest rate policy, global conflicts, and rising political pressure on financial institutions.
Strong trading and interest income drive revenue
Despite the earnings hit, JPMorgan’s underlying business performance remained robust.
Net interest income, the revenue generated from lending and customer deposits, rose 7 percent from a year earlier to $25 billion in the fourth quarter. Trading revenue across equities, fixed income, currencies, and commodities surged 15 percent, reflecting strong market activity late in the year.
Investment banking revenue was more mixed. Advisory and underwriting fees declined 4 percent as softer bond and equity issuance reduced deal-making income.
2025 closes as one of JPMorgan’s strongest years
For the full year, JPMorgan reported net income of $57 billion, a 2 percent decline from 2024 but still one of the highest totals in the company’s history. Annual revenue reached a record $182 billion.
Despite the Apple Card costs, JPMorgan posted record annual revenue of $182 billion in 2025
The bank retained its position as the world’s largest investment bank by revenue for the 13th straight year, according to Dealogic. Major transactions included leading advisory roles on high-profile corporate buyouts and acting as bookrunner on one of the year’s largest initial public offerings.
Investment banking fees climbed 8 percent to $9.6 billion while client trading revenue increased to $30 billion.
Outlook for 2026 remains optimistic
Looking ahead, JPMorgan said it expects to generate $95 billion in net interest income in 2026, excluding trading, about $3 billion more than it projected for 2025.
That forecast reflects confidence in the bank lending franchise even as regulators and politicians apply pressure to consumer finance.
Over the weekend, US President Donald Trump called on credit card companies to temporarily cap interest rates at 10 percent, a proposal that sent bank shares lower across the sector. It remains unclear how such a cap would be implemented or enforced.
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Sector eyes more earnings this week
JPMorgan results mark the first major US bank earnings release for the final quarter of 2025. Bank of America, Citigroup, and Wells Fargo are set to report their results on Wednesday, offering investors further insight into how American consumers and businesses ended the year.
Despite Tuesday’s earnings drag, JPMorgan stock remains up about 35 percent over the past 12 months, underscoring investor confidence in the bank long term strength even as new risks emerge.
FAQs
- Why did JPMorgan earnings miss expectations
JPMorgan’s earnings were impacted by a 2.2 billion dollar credit loss provision related to its takeover of the Apple Card portfolio. This reduced reported profit even though the bank beat analyst expectations on an adjusted basis.
- How did the Apple Card deal affect JPMorgan
The Apple Card acquisition increased JPMorgan’s exposure to consumer credit risk. The bank set aside billions in reserves to cover potential loan losses, which lowered reported earnings but positioned the bank to manage future defaults.
- Did JPMorgan actually beat Wall Street forecasts
Yes, on an adjusted basis. Excluding the Apple Card-related costs, JPMorgan earned 5.23 dollars per share, which was higher than the expected 4.85 dollars. Including those costs, earnings fell to 4.63 dollars.
- What did Jamie Dimon say about the economy
Jamie Dimon said the US economy remains resilient but warned that markets are underestimating risks such as geopolitical tensions, sticky inflation, and high asset prices.
- How did JPMorgan perform in 2025 overall
JPMorgan earned 57 billion dollars in net income for 202,5 making it one of its strongest years ever. Revenue reached a record 182 billion dollars, driven by strong trading and lending activity.
- Why is JPMorgan taking over the Apple Card
JPMorgan sees the Apple Card as a way to gain access to millions of high-quality Apple customers and grow its consumer banking business despite the short term financial risks.
- How did JPMorgan stock react to the earnings
JPMorgan shares were volatile after the earnings release as investors weighed the Apple Card costs against strong underlying business performance.
- What other banks are reporting earnings this week
Bank of America Citigroup and Wells Fargo are scheduled to release their quarterly earnings next giving investors a clearer picture of the health of the US banking sector.
