Why Investors Kept Banking on JPMorgan Chase Stock in 2025
Key Points
The lender consistently beat analyst profitability estimates throughout the year.
One factor contributing to its outperformance was its relatively high capital markets activity.
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All in all, 2025 was a good year to be an American bank, particularly if you were one of the so-called Big Four at the top of the heap. The shares of each lender in the quartet -- JPMorgan Chase (NYSE: JPM), Bank of America , Citigroup, and even once-beleaguered Wells Fargo -- all outperformed the benchmark S&P 500 index.
JPMorgan Chase wasn't the stock price appreciation champ out of the four (Citigroup's nearly 66% gain took the crown), but in numerous ways, it had the most impactful 2025. After all, a company doesn't experience a rise in its stock price by over 34% without being busy and successful. Here's a look at what made JPMorgan Chase a winner that year.
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A consistent outperformer
The first factor in JPMorgan's success was its consistently better-than-expected results. In each of the company's quarters reported in 2025, it beat the average analyst estimate for profitability.
Image source: Getty Images.
One important event in the U.S. banking world is the annual, mid-year round of stress tests conducted by the Federal Reserve. These are theoretical exercises designed to assess the resiliency of top banks to a range of adverse economic scenarios. The tests, which began after the financial crisis of the late 2000s, are intended to flag weaknesses within the top lenders.
As it has in every year since the tests were enacted, JPMorgan Chase passed its exams (although, to be fair, so did the 21 other banks put under the microscope). So although the result wasn't surprising, it cemented the company's reputation for running a solid business.
It also provided scope for the bank's latest dividend raise; it hiked its quarterly payout by 7% to $1.50 per share, which is by far the highest amount within the big four elites.
One advantage JPMorgan Chase currently enjoys is its relatively deep involvement in the capital markets. Among the big four, the company generates the most revenue from such activities. According to data compiled by The Banker, it earned nearly $4.1 billion in the first half of 2025 from investment banking, well ahead of No. 2 lender Bank of America's $2.7 billion.
This pole position was quite the advantage for JPMorgan Chase last year, and investors knew it. This country's capital markets continued to be frothy, despite numerous hiccups (relatively high interest rates and an erratic tariff regime imposed by the current presidential administration, among other factors).
From strength to strength
JPMorgan Chase's performance throughout 2025 was above average, and at times outstanding.
The bank's vaunted "fortress" balance sheet looks as strong as ever, and the still-humming American economy and vibrant capital markets should help it continue to grow key fundamentals. For those bullish on the U.S. economy generally, this stock is an ideal way to profit from it.
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Citigroup is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
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