JPMorgan Chase & Co. Q4 Earnings Call Highlights

Core Insights - JPMorgan Chase & Co. reported a strong financial performance for the full year, with a net income of $57.5 billion, earnings per share (EPS) of $20.18, and revenue of $185 billion, reflecting a return on tangible common equity (ROTCE) of 20% [1][6] - The fourth quarter net income was $13 billion, with an EPS of $4.63 and revenue of $46.8 billion, marking a 7% year-over-year increase [3][6] - The firm emphasized ongoing consumer resilience, with significant growth in consumer banking and asset management, despite a competitive environment [4][9] Financial Performance - For the full year, expenses were $24 billion, up 5% year-over-year, primarily due to increased volume-related costs and compensation growth [1] - In the fourth quarter, net income for Consumer & Community Banking (CCB) was $3.6 billion, with revenue of $19.4 billion, a 6% increase year-over-year [8] - The Corporate & Investment Bank (CIB) reported net income of $7.3 billion and revenue of $19.4 billion, up 10% year-over-year, driven by markets and securities services [11] Business Segments - Asset & Wealth Management (AWM) achieved a net income of $1.8 billion with a 38% pre-tax margin, and revenue increased 13% year-over-year to $6.5 billion [11] - The firm recorded long-term net inflows of $52 billion in the quarter and $209 billion for the year, with client asset net inflows of $553 billion for the year [11] 2026 Outlook - Management guided for total net interest income (NII) of about $103 billion for 2026, with adjusted expenses of roughly $105 billion to support investments in technology and AI [5][12] - The expected card net charge-off rate for 2026 is approximately 3.4%, reflecting favorable delinquency trends [14] Regulatory and Strategic Themes - Executives discussed the implications of stablecoin legislation and potential credit card APR caps, emphasizing that such regulations could reduce access to credit [15][17] - The firm is actively involved in blockchain technology and has a partnership with Coinbase to enable crypto purchases within its ecosystem [15] Capital and Risk Management - JPMorgan's standardized CET1 ratio was 14.5%, down 30 basis points sequentially, influenced by capital distributions and higher risk-weighted assets (RWA) [7] - The firm reported about $160 billion of exposure to non-bank financial institution (NBFI) lending, with a strong loss history since 2018 [18]