JPMorgan Misses Guidance: Debt Underwriting Slump Weighs on Q4
JPMorgan Chase & Co. kicked off the 2025 earnings season with a surprise miss, reporting a 5% year-over-year decline in investment-banking fees to $2.35 billion for the fourth quarter. The results defied the firm’s own December guidance, which had projected a "low single-digit" gain, and were dragged down by an unexpected 2% drop in debt-underwriting fees a sharp contrast to the 19% gain analysts had predicted. Despite the banking division's underperformance, the firm found strength in its trading desks; revenue there hit $8.24 billion, beating the highest analyst estimates thanks to robust activity in both equities and fixed income.
CEO Jamie Dimon remained optimistic about the broader landscape, describing the U.S. economy as "resilient" and noting that consumer spending remains healthy despite softer labor markets. While the bank’s full-year net income of $57 billion fell just short of its 2024 record, the firm is positioning for growth in 2026, forecasting $103 billion in net interest income (NII). However, this growth comes with a hefty price tag: the bank reiterated plans to spend $105 billion this year, a figure driven by volume and growth-related expenses that exceeds prior analyst expectations.