JPMorgan Chase‘s (NYSE: JPM) has been enjoying a strong 2025, with the share price up an impressive 31% this year through Monday this week (December 8). But on Tuesday, the bank’s shares fell nearly 4%, a sharp drop in just one day of trading.
The drop was the result of comments made by Marianne Lake, CEO of JPMorgan’s Consumer and Community Banking and a member of the bank’s Operating Committee, at a financial services conference hosted by its rival. Goldman Sachs.
Lake told attendees that the bank expects higher-than-projected expenses in 2026. He said expenses will likely reach $105 billion next year, about 9% higher than in 2025 and $4 billion above the average outlook of $101 billion. Lake said things like employee compensation, marketing, new branches and investments in artificial intelligence (AI) are driving up costs.
Lake also said on the conference that while the consumers and small businesses his division serves continue to look healthy, there is a “slightly more fragile” environment right now and perhaps less ability for these customers to face additional financial stress.
As for investment banking fees, Lake said they could see single-digit growth in the fourth quarter, which sounds below the 6% or more analysts were expecting.
JPMorgan shares have risen over the past three years, more than doubling since December 2022. Hopefully, for the company’s shareholders, this latest setback is just a blip.
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