JPMorgan’s profit rises on investment banking, trading strength

JPMorgan Chase reported a rise in profit for the third quarter, driven by growth in investment banking and trading. The US banking giant posted net income of $15.3 billion, or $5.57 per share, for the three months ended September 30, compared to $14.4 billion, or $5.07 per share, a year earlier. The strength of Wall Street's trading desks played a significant role in this performance, as markets volatility due to uncertainty over global interest rates and surging energy prices increased trading activity.

Revenue at JPMorgan's markets division, which includes its equity and fixed-income trading desks, increased by 15% in the third quarter compared to the previous year. The bank remains the top earner in investment banking revenue, according to Dealogic data, despite a slowdown in dealmaking caused by uncertainty about the Federal Reserve's interest-rate path and concerns about AI spending momentum.

Debt capital markets have emerged as a notable bright spot for the industry, as major technology companies raise billions to support their AI-driven growth strategies. JPMorgan's investment banking fees rose 14% during the quarter, compared to the same period last year.