Big banks opened earnings season with rising loans and lower card losses. Their CEOs are bracing for higher rates anyway

The largest U.S. banks opened third-quarter earnings season on October 13 and 14, 2026, with results that showed borrowers mostly keeping up with payments even as interest rates, oil prices and inflation moved higher. JPMorgan Chase, Wells Fargo, Citigroup and Goldman Sachs reported on Tuesday, and Bank of America followed on Wednesday. Across the group, loans grew, card spending rose and credit card charge-off rates at the two biggest consumer lenders came down from a year earlier.

The executives' tone was more careful than the numbers. Several leaders named higher rates and energy costs as the main risks to watch, and JPMorgan's chief executive said the bank is tightening its own lending standards slightly. For small business owners who depend on bank credit, those comments matter as much as the profit figures.

What the big banks reported for the third quarter

JPMorgan Chase earned $15.3 billion, or $5.57 a share, up 6% in net income and 10% per share from a year earlier. Managed revenue rose 8% to $50.9 billion, and net interest income, the money a bank earns on loans minus what it pays on deposits, rose 13% to $27.1 billion. The figures included a $658 million loss on investment securities.

Wells Fargo reported net income of $5.95 billion, or $1.87 a share, up 6% and 13% respectively. Revenue rose 2% to $21.9 billion. Average loans grew 11% to $1.03 trillion, and average deposits also rose 11%.

Citigroup earned $5.25 billion, or $2.85 a share, on revenue of $23.8 billion, up 8%. The per-share gain looks large partly because the year-earlier quarter included a goodwill impairment; excluding that item, earnings per share rose 27%. Chief Executive Jane Fraser called it the bank's best third-quarter revenue in a decade.

Goldman Sachs posted net revenue of $18.7 billion, up 23%, and earnings of $17.01 a share, up 39%. Investment banking fees rose 21% to $3.2 billion, and equities trading revenue jumped 72%.

Bank of America reported net income of $6.9 billion, or $0.91 a share, down from $8.3 billion a year earlier. The decline came from a $1.2 billion regulatory settlement charge tied to consent orders with the Office of the Comptroller of the Currency and FinCEN over its anti-money laundering and sanctions compliance programs. Excluding the charge, net income was $8.1 billion. Revenue rose 3% to $30 billion and net interest income climbed 8%.

Are consumers and businesses still paying their bills?

So far, mostly yes. JPMorgan's card services net charge-off rate, the share of card balances written off as uncollectible, fell to 2.91% from 3.15% a year earlier. Wells Fargo's card charge-off rate fell to 3.73% from 4.02%, according to a side-by-side review of both banks' credit data. JPMorgan's total net charge-offs dropped by $389 million from a year earlier, and Bank of America's net charge-off ratio was 0.44%.

Spending held up too. JPMorgan said combined debit and credit card sales volume rose 10% to about $539.5 billion, and its chief financial officer, Jeremy Barnum, said the growth spanned categories including gas and travel, PYMNTS reported. Some of that increase reflects higher prices, not more purchases, given that gasoline prices rose sharply over the summer.

There were softer spots. Wells Fargo's provision for credit losses rose 51% to $1.03 billion as the bank set aside more reserves, and its auto loan charge-off rate rose to 0.57% from 0.45%. Card delinquencies at both JPMorgan and Wells Fargo increased between June and September, even though they remain below year-earlier levels.

What bank CEOs said about the economy

JPMorgan Chief Executive Jamie Dimon said the economy continued to be supported by strong business investment and consumer spending, but added that the bank remains "prepared for a wide range of outcomes." On the earnings call, he said JPMorgan is tightening up a little on credit, pointing to looser terms and weaker covenants he sees elsewhere in the lending market, according to a summary of the call. Barnum warned that rates staying high for a long period could eventually push unemployment up and hurt credit performance.

Wells Fargo Chief Executive Charlie Scharf said the bank's consumer and business customers are doing well and that businesses continue to carry strong balance sheets. He listed higher interest rates, higher oil prices and persistent inflation as risks, while arguing that forces such as AI infrastructure investment and high employment continue to outweigh them.

The backdrop is a Federal Reserve that raised its benchmark rate to a range of 3.75% to 4.00% on September 16, and a consumer price report released October 14 showing inflation at 3.7% over the past year.

What the bank results mean for small business loans

For owners, the headline finding is that banks are still lending. Loan balances grew at a double-digit pace at JPMorgan and Wells Fargo, and Wells Fargo's average commercial banking loans rose 10% to $240.5 billion. JPMorgan said it had provided $27 billion of credit to U.S. small businesses so far this year. Bank of America said it has ranked as the top small business lender for 21 straight quarters, based on federal call report data.

The caution in the executives' remarks suggests a few practical steps:

• Expect closer underwriting. When the largest lender in the country says it is tightening slightly, smaller banks often follow. Owners planning to apply for a term loan or line of credit in the coming months may benefit from having current financial statements, tax returns and cash-flow projections ready before they apply.
• Know what your rate is tied to. Many business lines of credit float with the prime rate, which moves with the Fed. If the central bank raises rates again at its October 28 meeting, those payments would rise.
• Your banking relationship counts. JPMorgan's CFO said the bank is focused on winning primary banking relationships. Businesses that keep operating accounts, payroll and payments with one lender may find it easier to negotiate when credit gets tighter.
• Watch your customers' credit, too. Rising delinquencies, even from low levels, are a signal for any business that extends terms to customers. Reviewing net-30 and net-60 accounts now is a low-cost precaution.

Why Wall Street's dealmaking boom matters on Main Street

Goldman's 21% jump in investment banking fees and Citi's strongest third quarter in a decade point to an active market for mergers, stock offerings and debt deals. That activity mostly involves large companies, but it tends to ripple outward. Busy capital markets often mean more acquisitions of mid-sized firms, more private equity interest in regional service businesses and a healthier market for owners thinking about selling. Owners considering an exit in the next few years may find buyers have money to spend, though higher borrowing costs can push down the prices those buyers are willing to pay.

What to watch next

Earnings season continues through the week, with regional lenders that do much of the country's small business lending still to report. According to an earnings calendar published October 12, PNC and U.S. Bancorp were scheduled for October 15, followed by M&T Bank, Citizens Financial, Truist and Regions Financial on October 16. Their reserve builds and comments on commercial borrowers will show whether the caution at the biggest banks is spreading.

The other key date is October 28, when the Federal Reserve makes its next rate decision. A second increase would raise borrowing costs on floating-rate business debt and test the credit resilience the banks described this week.