JPMorgan’s profit rises on investment banking, trading strength

JPMorgan Chase's third-quarter profit climbed to US$15.3 billion, or US$5.57 per share, from US$14.4 billion, or US$5.07 per share in the year-ago period, according to a report by Reuters. The US banking giant credited the rise to strong performance in its investment banking and trading divisions. Wall Street trading desks enjoyed a successful year, with JPMorgan extending its winning streak as market volatility, driven by uncertainty around global interest rates and surging energy prices, led to heightened trading activity.

Investors remained cautious due to a continuous flow of market-moving events, prompting them to restructure portfolios and hedge against potential risks. The markets division, which includes equity and fixed-income trading desks, saw a 15% revenue increase compared to the previous year. JPMorgan remains the leading earner in investment banking revenue, as per Dealogic data, despite a slowdown in dealmaking activity due to companies' uncertainty over the Federal Reserve's interest rate path and growing concerns about potential AI spending slowdown.

Debt capital markets have emerged as a significant positive for the industry, with large technology firms raising billions of dollars to fund AI-driven growth initiatives. JPMorgan's investment banking fees also rose by 14% in the quarter compared to the previous year.