WALTER10K CASE SUMMARY

The Good the strongest evidence Walter found

The highest total net revenue of the three years presented — a bigger dividend, and a larger buyback.

Total net revenue reached $182.4 billion in FY2025, from $177.6 billion in FY2024 and $158.1 billion in FY2023 — the highest of the three years shown. Diluted earnings per share rose to $20.02 from $19.75. Investment banking fees grew to $9.6 billion from $8.9 billion, and asset management fees to $20.3 billion from $17.8 billion. Dividends declared rose to $5.80 per share from $4.80; treasury stock repurchased reached $31.6 billion, from $18.8 billion. Total assets ended the year at $4.42 trillion from $4.00 trillion; deposits grew to $2.56 trillion from $2.41 trillion.

The Bad the clearest pressure the company disclosed

Profit fell while revenue rose — with the cost of expected credit losses climbing to $14.2 billion.

Net income was $57.0 billion, down from $58.5 billion in FY2024, even as total net revenue rose. The provision for credit losses — the expense the firm records for expected credit losses — climbed to $14.2 billion from $10.7 billion in FY2024 and $9.3 billion in FY2023. Total noninterest expense rose to $95.6 billion from $91.8 billion. A one-time boost didn’t repeat: FY2024’s $8.0 billion initial gain on the Visa share exchange fell to zero, and Other income dropped to $6.2 billion from $12.5 billion.

The Ugly the most serious risk Walter found

Russian courts have ruled against the firm for more than it holds in Russia — and the filing says those assets “could be seized in full.”

The litigation note discloses that Russian courts have entered judgments against the firm, including one claim for $439 million, and that the judgments exceed the firm’s available assets in Russia. Following an August 2025 Executive Order on “fair banking,” the firm faces reviews, investigations, and legal proceedings — including a civil lawsuit filed in January 2026 in Florida state court by President Donald J. Trump, in his personal capacity, against JPMorgan Chase Bank, N.A. and its CEO. A merchant interchange trial is scheduled to begin in April 2026. Across all its legal proceedings, the firm estimates reasonably possible losses above reserves of $0 to approximately $1.2 billion.

• The credit-loss cushion got more expensive. Provision for credit losses rose to $14.2 billion from $10.7 billion — the third straight yearly increase shown ($9.3 billion in FY2023).
• The Visa windfall didn’t repeat. FY2024’s $8.0 billion initial gain on the Visa share exchange fell to zero in FY2025; Other income dropped to $6.2 billion from $12.5 billion.
• Buybacks stepped up. Treasury stock repurchased rose to $31.6 billion from $18.8 billion and $9.8 billion in FY2023.
• The dividend rose. Declared dividends per common share went to $5.80 from $4.80; dividends paid totaled $16.6 billion, from $14.8 billion.
• New legal fronts opened. The August 2025 Executive Order on fair banking brought reviews, investigations, and the January 2026 Trump lawsuit; Russian courts entered judgments against the firm.
• New capital rules may be coming. The filing states U.S. banking regulators “may issue an updated proposal to amend the U.S. risk-based capital framework in early 2026” — timing and content uncertain.