JPMorgan Chase & Co. (NYSE: JPM) expects third-quarter investment banking fees and markets revenue to grow by a mid-to-high teens percentage. Co-president Doug Petno highlighted broad-based strength across the Commercial & Investment Bank (CIB), citing robust M&A activity and stable credit conditions.

Revenue Outlook And Economic View

Petno stated that the bank anticipates significant sequential growth in both investment banking fees and markets revenue for the third quarter, assuming no major market disruptions. This forecast includes a seasonal decline from a record second quarter but still projects double-digit percentage gains across Financial Institutions, Commodities, and Broking (FICC) and equities.

Regarding the broader economic landscape, Petno noted that JPMorgan sees "nothing flashing red" and very little "flashing yellow." The bank has identified some weakness among companies exposed to lower-income consumers and businesses vulnerable to AI-driven disruption. However, management does not perceive any systemic concerns at this time.

Private Equity And Credit Markets

Private equity activity has returned to normal levels, with financing markets open for strong credits and sponsors. Sponsor-backed companies accounted for approximately 25% of US and global IPOs so far this year. Sponsor M&A activity is up about 6%, with total transaction value exceeding $1 trillion.

Petno warned that investments from the 2019-2021 vintages could face pressure due to high leverage and acquisition multiples secured at lower interest rates. The bank remains cautious on private credit, particularly regarding weaker players during a downturn, though the asset class is in a "decent place" compared to earlier in the year.

AI Financing And Deposit Competition

AI investments are driving increased borrowing, but JPMorgan is maintaining strict underwriting discipline. The bank keeps its portfolio granular with exposure limits for frontier-model companies and hyperscalers. Petno stated that opportunities exist to safely deploy credit in the near term while assessing adverse AI scenarios.

Competition for high-quality operating deposits remains intense. JPMorgan ended last year with $1.2 trillion in CIB deposits, up 14% year over year. Deposits were up 10% at midyear.

Blockchain And Strategic Priorities

Institutional demand for stablecoins remains limited, with interest largely tied to cryptocurrency. The Kinexys blockchain platform has processed more than $4 trillion since inception and handles about $5 billion daily. Petno described blockchain-based financial products as nascent due to interoperability, cost, and regulatory questions.

Organic growth remains the primary priority for the CIB. Acquisitions are not expected to be a major growth driver, given the high bar for deals. The bank continues to target a 16% through-the-cycle return on equity for the CIB.

What the Numbers Show

The divergence between the expected mid-to-high teens revenue growth and the explicit warning about 2019-2021 vintage private equity leverage highlights a selective risk environment. While current transaction volumes are strong, the bank’s caution on older, highly leveraged assets suggests that future earnings stability may depend on managing legacy credit quality rather than just new deal flow.

Chase has expanded its Ultimate Rewards program with a new feature allowing eligible cardmembers to redeem points for cash to invest in J.P. Morgan Self-Directed Investing accounts.

The "Invest Your Points" option connects the rewards ecosystem directly with J.P. Morgan Wealth Management, enabling customers to manage their financial lives and investments in one place. This move aims to make investing more accessible and intuitive for Chase clients.

How It Works

Customers can now redeem their points for cash to invest in an eligible J.P. Morgan Self-Directed Investing account or work with a J.P. Morgan advisor to invest in a taxable investment account. Once points are redeemed for cash, customers choose how to invest based on their own goals and risk tolerance.

For customers with a J.P. Morgan Self-Directed Investing account, the experience is available through the Chase Mobile app and Chase.com. This allows them to manage their rewards and investing activity in one connected digital experience.

Strategic Context

Chris Reagan, President of Branded Cards at Chase, stated that every new redemption option makes the program more valuable. He noted that cardmembers can now put rewards toward investing and financial goals in a connected digital experience.

Paul Vienick, Head of Online Investing at J.P. Morgan Wealth Management, said the goal is to make investing more accessible and connected to how clients handle finances. Giving clients the ability to invest with Ultimate Rewards points helps them manage investments all in one place.

What the Numbers Show

JPMorgan Chase & Co. (NYSE: JPM) reported assets of $5 trillion and $375 billion in stockholders’ equity as of June 30, 2026. The firm serves more than 87 million consumers and 7.5 million small businesses. J.P. Morgan Wealth Management oversees approximately $1.4 trillion of assets under supervision with over 6,000 advisors.

Additional Benefits

With J.P. Morgan Self-Directed Investing, clients enjoy unlimited commission-free online trades on thousands of stocks, ETFs, mutual funds, and treasuries. Options trades are subject to a $0.65 per-contract fee. Other fees and charges may apply.

New customers can earn up to $1,000 when they open and fund an eligible account with qualifying new money. Existing redemption options include travel, cash back, statement credits, and gift cards.