JPMNYSE

JPMorgan Chase

What it does

JPMorgan reports 4 businesses. In FY2025, consumer and community brought in 42%, commercial and investment brought in 43%, asset and wealth brought in 13% and corporate brought in 4% of total income.

By region, North America made up 77%, then Europe, Middle East and Africa at 13%.

From JPMorgan Chase & Co. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2025.

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How it makes money

Where JPMorgan's FY2025 total income came from, what it cost to earn, and what was left for shareholders.

Total incomeUS$182.4B

ExpensesUS$95.6B

Net profitUS$57.0B

Net profit as % of income31.3%

▸ JPMorgan Chase, FY2025: from total income to profitJPM

Income by

Income
Costs, allowances and tax
Profit
% = share of total income

Source: JPMorgan Chase & Co. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2025 (13 Feb 2026), statement of income, Notes 6, 31 and 32. FY2025 is the year to 31 Dec 2025. Figures as reported, in US$ millions in the tooltips and table.

Technical: expenses were 52.4% of total income and net profit 31.3%. Allowances for bad loans took 7.8%.

Plain: of every dollar JPMorgan earned, about 52 cents went on running the bank and about 31 cents ended up as profit for shareholders.

Total income by business

Consumer and communityUS$76.0B · 42%Profit before tax US$24.3B
Commercial and investmentUS$78.5B · 43%Profit before tax US$37.6B
Asset and wealthUS$24.1B · 13%Profit before tax US$8.6B
CorporateUS$7.0B · 4%Profit before tax US$5.2B

Reconciling items (fully taxable-equivalent adjustments): −US$3,134M, reported outside the slices above.

Total income by region

North AmericaUS$139.7B · 77%Profit before tax US$55.1B
Europe, Middle East and AfricaUS$24.5B · 13%Profit before tax US$9.7B
Asia PacificUS$14.1B · 8%Profit before tax US$5.8B
Latin AmericaUS$4.2B · 2%Profit before tax US$2.0B

See the numbers

FY2025	US$M	% of income
Net interest income	95,443	52.3%
Net fee and commission income	52,294	28.7%
Other non-interest income	34,710	19.0%
Total income	182,447	100.0%
Expenses	−95,640	52.4%
Allowances for credit and other losses	−14,212	7.8%
Profit before tax	72,595	39.8%
Income tax	−15,547	8.5%
Net profit to shareholders	57,048	31.3%

Fee income here groups investment banking, lending and deposit, asset management, commissions and card fees. Other income is trading (principal transactions), mortgage fees, securities gains and losses, and other income.
JPMorgan calls its total income total net revenue, and its allowances the provision for credit losses.
JPMorgan reports its businesses on a managed basis, which grosses up tax-exempt income. The US$3,134M reconciling item takes that back out.

Moat rating

Wide moat

8.0 / 10

Return on common equity averaged 17.0% over FY2021 to FY2025, 9.7 percentage points above a 7.34% cost of equity, and beat it in every year.

For five years running, JPMorgan earned well above what its shareholders could reasonably expect, even in its weakest year.

The numbers

8.8 / 10

Return on equity against cost of equity, money-centre banks

Average ROE: 17.0%
Average excess return: +9.7 pp
Years above the hurdle: 5 of 5

Spread 8 × 60% + durability 10 × 40% = 8.8

The sources

7.2 / 10

Where JPMorgan's advantage comes from

1. Brand and pricing power7 / 10
Loans-to-deposits ratio of 58% at end-2025, so deposits fund lending with room to spare. Net interest income was US$95.4B.
JPMorgan holds far more deposits than it lends out, so it never has to pay up for funding.
2. Barriers to entry8 / 10
Banking needs a US charter and regulatory capital. JPMorgan's CET1 ratio was 14.6% (standardised) at end-2025.
You can't just open a bank, let alone one this size. Regulators decide who gets a licence and how much capital to hold.
3. Switching costs7 / 10
Consumer & Community Banking earned US$76.0B of revenue in 2025 from deposits, cards, home loans and branches.
Moving your salary, mortgage and cards to another bank is a hassle most people never get round to.
4. Network effects6 / 10
Markets trading (principal transactions) brought in US$27.2B. More client flow gives a dealer better prices and deal access, which draws more clients.
Big investors go where the trading is busiest, and the busiest desks get busier.
5. Economies of scale8 / 10
Overhead ratio of 52% in 2025 on US$4.42T of total assets.
JPMorgan spends about 52 cents of every dollar it earns on running the bank. That's more than DBS's 40 cents, but its costs are spread over US$4.4 trillion of assets.

Return on equity: JPMorgan Chase & Co. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2023, consolidated financial highlights; JPMorgan Chase & Co. (SEC EDGAR), Form 10-K for the fiscal year ended 31 Dec 2025, consolidated financial highlights. Hurdle: Aswath Damodaran, NYU Stern, Cost of capital by sector (US), data as of January 2026. JPMorgan is a US money-centre bank, so Damodaran's figure applies directly.

Lens scores are rasinbunlover's judgment, reviewed 19 Oct 2026. A wide moat is a reason to dig deeper, not a verdict on the price. For education only. Not financial advice.

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