Big-four bank profit fell to $33.4bn in Q3 2026 from $42.5bn
JPMorgan, Bank of America, Wells Fargo and Citi earned $33.4bn in the quarter to September 30, 2026. Reserves were built, and four capital ratios fell.
- What happened
- JPMorgan Chase, Wells Fargo, Citigroup, Bank of America, Goldman Sachs and Morgan Stanley reported third-quarter 2026 results between October 13 and October 14, 2026. The four lending banks earned a combined $33.4 billion, down from the $42.5 billion they reported for the second quarter, when $4.2 billion of JPMorgan's profit came from one-off gains.
- Why
- The decline is mostly the absence of those gains plus a $1.2 billion regulatory charge at Bank of America. Underneath, net interest income rose at the three banks that print a dollar figure, and all four lending banks added to loan-loss reserves.
- The numbers that matter
- $15,305mJPMorgan Chase net income, Q3 2026, released October 13, 2026$539mJPMorgan net reserve build, Q3 2026, on $2.7bn of credit costs10.0%Wells Fargo CET1 ratio, September 30, 2026, down from 10.3%$1.2bnBank of America regulatory settlement charge, Q3 2026, $0.17 a share
- Why it matters
- Net interest income is the bank's side of a saver's deposit rate, provisions are a lender's own reading of whether borrowers are paying, and the capital ratio is what stands between a loss and a depositor.
- What happens nextas we saw it on 16 Oct 2026
- Each bank files its Form 10-Q for the quarter ended September 30, 2026 in the weeks after the release; the FOMC next meets on October 27–28, 2026.
Six banks earned $43.6 billion in one quarter; JPMorgan alone came within $143 million of Goldman Sachs, Morgan Stanley and Citigroup together.
| JPMorgan Chase | 15305.0× |
|---|---|
| Bank of America | 6933.0× |
| Wells Fargo | 5951.0× |
| Goldman Sachs | 5294.0× |
| Citigroup | 5245.0× |
| Morgan Stanley | 4909.0× |
The four largest US lending banks earned $9.1 billion less in the third quarter of 2026 than in the second, and almost none of the drop came from lending. JPMorgan Chase reported net income of $15,305 million on October 13, 2026, against $21,155 million for the quarter to June 30, a difference of $5,850 million. The second-quarter figure contained $4.2 billion of after-tax gains on Visa shares and equity investments that the bank labelled significant items; the third-quarter figure contains a $498 million after-tax loss on investment securities labelled the same way. Swap those two items and most of the gap closes.
Bank of America, which reported on October 14, 2026, earned $6,933 million, down from $9,074 million. It booked a $1.2 billion non-tax-deductible charge to accrue for civil money penalties under consent orders with the Office of the Comptroller of the Currency and FinCEN, announced October 13, 2026. The charge took $0.17 off earnings per share. Without it, the bank's own adjusted return on tangible common equity was 14.9% rather than the 12.6% reported.
The preview piece set out five lines to read in each release. This piece reports what those lines said, adds Goldman Sachs and Morgan Stanley, and does the arithmetic. Every number is taken from the bank's own release, filed with the SEC as an exhibit to a Form 8-K or posted on its investor relations site.
The headline numbers, six banks
| Bank | Released | Net income | Diluted EPS | Revenue | ROTCE |
|---|---|---|---|---|---|
| JPMorgan Chase | Oct 13 | $15,305m ($15.8bn ex item) | $5.57 ($5.75 ex item) | $50,172m reported; $50,907m managed | 20% (21% ex item) |
| Bank of America | Oct 14 | $6,933m (from $8,332m) | $0.91 (from $1.04) | $29,958m (from $29,040m) | 12.6% (14.9% adjusted) |
| Wells Fargo | Oct 13 | $5,951m (from $5,589m) | $1.87 (from $1.66) | $21,870m (from $21,436m) | 16.3% (from 15.2%) |
| Goldman Sachs | Oct 13 | $5,294m (from $4,098m) | $17.01 (from $12.25) | $18,679m (from $15,184m) | ROE 18.7%; ROTE not stated |
| Citigroup | Oct 13 | $5,245m (from $3,752m) | $2.85 (from $1.86) | $23,845m (from $22,090m) | 11.5% (from 8.0%) |
| Morgan Stanley | Oct 14 | $4,909m (from $4,610m) | $3.03 (from $2.80) | $20,338m (from $18,224m) | 22.6% (from 23.5%) |
Net income for the quarter to September 30, 2026: JPMorgan $15,305 million + Bank of America $6,933 million + Wells Fargo $5,951 million + Citigroup $5,245 million = $33,434 million, or $33.4 billion. The preview put the same four banks at $42.5 billion for the quarter to June 30, 2026. The fall is 42.5 − 33.4 = $9.1 billion, or 9.1 ÷ 42.5 = 21.4%. The preview also computed an underlying second-quarter figure of $38.3 billion after removing JPMorgan's $4.2 billion of one-off gains. Against that, the third quarter is $4.9 billion lower, and $1.2 billion of the $4.9 billion is Bank of America's settlement charge.
$33,434 million + Goldman Sachs $5,294 million + Morgan Stanley $4,909 million = $43,637 million for six banks in one quarter. JPMorgan's $15,305 million is 35.1% of that total. Goldman Sachs, Morgan Stanley and Citigroup together earned 5,294 + 4,909 + 5,245 = $15,448 million, so one bank's quarter was $143 million short of three others' combined.
Line one: net interest income rose where it is printed
Net interest income is the line most directly tied to the Federal Reserve's target range, raised to 3.75%–4.00% on September 16, 2026. Three of the four lending banks print a firm-wide dollar figure; Citigroup's release gives only a percentage.
From the release: $12,517 million in Q3 2026 against $11,950 million in Q3 2025. (12,517 − 11,950) ÷ 11,950 = 4.74%, which the bank reports as “increased 5%”. Against the prior quarter: (12,517 − 12,317) ÷ 12,317 = 1.62%. Average loans were $1,033.4 billion against $1,026.5 billion in Q2, a rise of 0.67%. Income rose faster than balances, so the spread widened on the quarter.
Goldman Sachs reported net interest income of $3,770 million, down from $3,852 million in Q3 2025. Morgan Stanley reported $3,250 million, up from $2,491 million, of which Wealth Management contributed $2,228 million. At both firms this line is a fraction of revenue: 20.2% at Goldman Sachs (3,770 ÷ 18,679) and 16.0% at Morgan Stanley (3,250 ÷ 20,338), against 57.2% at Wells Fargo (12,517 ÷ 21,870).
JPMorgan's NII went from $25.6 billion in Q2 2026 to $27.1 billion in Q3 2026, with the Markets desks growing fastest: the headline is up 13% on a year earlier while the figure excluding Markets is up 6%. The preview flagged that gap as the trading contribution; it widened from six points to seven.
Line two: every lending bank built reserves
The provision for credit losses is net charge-offs (loans written off in the quarter, less recoveries) plus the change in the allowance. In the second quarter JPMorgan's build was $149 million. In the third it was $539 million.
| Bank | Provision | Net charge-offs | Allowance change | NCO ratio |
|---|---|---|---|---|
| JPMorgan Chase | $2,743m (from $3,403m in Q3 2025) | $2.2bn, down $389m | Net build of $539m | Card Services 2.91% |
| Citigroup | $2,586m (from $2,450m) | $2,217m (from $2,214m) | Net build of $369m in text; $333m in table | Not stated |
| Bank of America | $1,269m (from $1,295m) | $1,349m (from $1,367m) | Not broken out; provision below charge-offs | 0.44%, down 3 bps |
| Wells Fargo | $1,029m (from $681m) | $983m, 0.38% annualised | Allowance $14,458m, 1.38% of loans | 0.38% |
| Goldman Sachs | $368m (from $339m) | Not stated | “Impairments related to wholesale loans” | Not stated |
| Morgan Stanley | $148m (from $0) | $105m, corporate and CRE loans | Growth in corporate and secured lending | Not stated |
Wells Fargo: provision $1,029 million minus net charge-offs $983 million = a build of $46 million, which the release attributes to commercial and industrial and auto loans, partly offset by a lower allowance for commercial real estate. Bank of America: $1,269 million minus $1,349 million = −$80 million, a small net release. JPMorgan states its build as $539 million on $2.7 billion of credit costs. Citigroup gives $369 million in its text and $333 million in its table; we show both and use neither in a sum. Across the four, provisions total 2,743 + 2,586 + 1,269 + 1,029 = $7,627 million.
At JPMorgan, Bank of America and Citigroup, net charge-offs were lower than or equal to a year earlier, and JPMorgan's card loss rate fell to 2.91% from 3.34% in Q2 2026. Yet JPMorgan and Citigroup both built reserves, and Citigroup named “changes in the macroeconomic outlook and portfolio growth” as the reason. A build with falling charge-offs means the banks are reserving for loans they expect to go bad later, not for loans going bad now. Wells Fargo's provision rose 51% on a year earlier (1,029 ÷ 681 = 1.511) while its charge-offs rose 3% (983 ÷ 954 = 1.030, using the income-statement comparison): the same pattern in a smaller bank.
Line three: four capital ratios fell
Common Equity Tier 1, the capital a bank holds against its risk-weighted assets, is the one line that reflects both the quarter's profit and the quarter's payouts. All six report it as a preliminary estimate under the Standardized approach.
Goldman Sachs reported a Standardized CET1 ratio of 12.4% at September 30, 2026, down from 12.9% at June 30, 2026, after returning $4.49 billion in the quarter: $3.00 billion of buybacks and $1.49 billion of dividends. Morgan Stanley reported 14.9%, from 15.1% in Q3 2025, after $1.5 billion of buybacks.
Wells Fargo's ratio has dropped a full point in a year, from 11.0% to 10.0%, while it bought back $2.5 billion of stock in the quarter and grew average loans to $1,033.4 billion from $928.7 billion. Bank of America's 37 basis-point drop coincides with $8.2 billion returned and a $1.2 billion non-deductible charge. JPMorgan cut net buybacks to $664 million from $6.2 billion in Q2, and its ratio still slipped 20 basis points: capital was being used to fund a loan book that grew 10% on a year earlier.
What the releases said about the rest of 2026
None of the six releases printed a changed full-year guidance figure. Wells Fargo's, Goldman Sachs' and Morgan Stanley's contain only the standard forward-looking cautions. Bank of America's presentation gives a rate sensitivity rather than a guide: a 100 basis-point parallel rise in rates would add $1.4 billion to net interest income over twelve months, and a 100 basis-point fall would remove $1.9 billion. Citigroup's chief executive said “we expect to exceed this year's return target, even as we pull forward investments toward our 11–13% near-term goal”, against the 11.5% return on tangible common equity reported for the quarter. Anything said on the calls is not in the releases and is not reported here.
What it means for your money
Net interest income is the bank's side of the deposit rate. Wells Fargo named “higher deposit costs reflecting growth in interest-bearing commercial deposits” as an offset to its income, which is the bank saying it paid more to hold money. Bank of America's average deposits were $2.02 trillion, up 2%; the gap between what it earned on $1.23 trillion of loans and what it paid on those deposits is most of its $16.4 billion. A saver comparing a deposit rate with the target range of 3.75%–4.00% is looking at the same spread from the other side.
The provision line is a published reading of credit conditions. JPMorgan's card charge-off rate of 2.91% and Bank of America's overall ratio of 0.44% are both lower than a quarter earlier; the site's piece on household debt sets out the New York Fed's figures for the same borrowers. A reader with a card balance can set the 2.91% loss rate against the rate charged on that balance; the arithmetic is in the piece on credit card interest.
The capital ratio is the line behind FDIC insurance. A bank at 10.0% has $10 of loss-absorbing capital for every $100 of risk-weighted assets; a bank at 14.9% has $14.90. Deposits are insured to the legal limit regardless.
For a shareholder, the useful discipline is to read the “excluding significant items” figure before comparing quarters. JPMorgan's reported profit fell 27.7% from Q2 (15,305 ÷ 21,155 = 0.723); its profit excluding the items it flagged went from $16.9 billion to $15.8 billion, a fall of 6.5%. The site's explainer on adjusted earnings and the piece on reading an earnings release cover why the two figures differ.
Sources
- JPMorganChase Reports Third-Quarter 2026 Net Income of $15.3 Billion ($5.57 Per Share), earnings release, October 13, 2026JPMorgan Chase & Co. Investor Relations · Oct 16, 2026 · Primary source
- Wells Fargo Reports Third Quarter 2026 Net Income of $6.0 billion, or $1.87 per Diluted Share (Form 8-K Exhibit 99.1, October 13, 2026)Wells Fargo & Company via SEC EDGAR · Oct 16, 2026 · Primary source
- Citigroup Third Quarter 2026 Results and Key Metrics (press release, October 13, 2026)Citigroup Inc. · Oct 16, 2026 · Primary source
- Citigroup Inc. Form 8-K, October 13, 2026, Exhibit 99.1 (third quarter 2026 results)Citigroup Inc. via SEC EDGAR · Oct 16, 2026 · Primary source
- Bank of America Reports 3Q26 Net Income of $6.9 Billion; EPS of $0.91 (Form 8-K Exhibit 99.1, October 14, 2026)Bank of America Corporation via SEC EDGAR · Oct 16, 2026 · Primary source
- Bank of America 3Q26 Financial Results presentation (Form 8-K Exhibit 99.2, October 14, 2026)Bank of America Corporation via SEC EDGAR · Oct 16, 2026 · Primary source
- Goldman Sachs Reports Third Quarter 2026 Earnings Results (Form 8-K exhibit, October 13, 2026)The Goldman Sachs Group, Inc. via SEC EDGAR · Oct 16, 2026 · Primary source
- Morgan Stanley Third Quarter 2026 Earnings Results (Form 8-K exhibit, October 14, 2026)Morgan Stanley via SEC EDGAR · Oct 16, 2026 · Primary source
- FOMC statement, September 16, 2026Federal Reserve Board · Sep 16, 2026 · Primary source
- FOMC meeting calendarsFederal Reserve Board · 2026 · Primary source
Related analysis
Four banks, $42.5bn of Q2 profit: how to read the Q3 releases
JPMorgan, Wells Fargo, Citi and Bank of America report Q3 results on October 13 and 14, 2026. Their Q2 filings show the five lines to read first.
Micron's 55-cent gap: reading an earnings release line by line
Micron reported $32.87 a share under GAAP and $33.42 adjusted. Its own reconciliation shows where the $697 million went. A worked guide.
Household debt fell $13bn in Q2 2026; card stress held at 6.97%
The New York Fed puts household debt at $18.771 trillion for June 2026. The total dipped; new card delinquencies ran at 4.6 times the mortgage pace.