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JPMorgan Chase delivered another solid quarter, marking its seventh straight EPS beat of at least $0.22, but shares are trading lower as JPM reported a more modest EPS beat and increased loan-loss provisioning. EPS came in ahead of expectations, though the beat was the smallest since 4Q23, missing the high bar set by recent $0.44+ upside quarters. Revenue rose 8.8% yr/yr to $46.43 bln, well ahead of consensus.

• All business lines posted strong results: CIB revenue grew 17% to $19.9 bln; Markets revenue surged 25% to a record $8.9 bln on strength in Fixed Income and Equities. Banking & Payments revenue rose 10% to $9.5 bln.
• Investment Banking revenue increased 14% to $2.7 bln, aided by a more M&A-friendly environment.
• Consumer & Community Banking (CCB) added 400,000+ net new checking accounts. Wealth Management saw a record 43,000+ first-time investors; AWM revenue topped $6 bln with strong $109 bln net inflows.
• Credit costs totaled $3.4 bln, including $2.6 bln in net charge-offs and an $810 mln reserve build (up from $439 mln in Q2), which raised some eyebrows. Slightly elevated wholesale charge-offs stemmed from isolated fraud in secured lending facilities. Consumer credit remains solid, with delinquency rates below expectations.
• Jamie Dimon's economic commentary carries weight, as always. He acknowledged some softening in job growth, and flagged ongoing risks including geopolitical tension, tariffs, sticky inflation, and elevated asset prices. His tone was more cautious than in Q2, when he described the consumer as "basically fine."

Why the stock is lower despite strong results: The modest EPS upside paled in comparison to recent standout quarters. Higher reserve build and elevated charge-offs added to credit concerns. Dimon's somewhat more subdued tone may have contributed to market unease. Finally, a weaker broader market backdrop likely amplified the reaction.

Briefing.com Analyst Insight:

The fundamentals remain strong, but cautious credit signals and Dimon's more measured outlook have investors reassessing the near-term risk/reward.