A Wall Street dealmaking bonanza in the third quarter helped boost profits at JPMorgan Chase (JPM) as the country’s largest bank raked in higher revenues from its investment banking and trading operations.
JPMorgan posted net income of $14.4 billion, a 12% increase from the third quarter of last year and roughly $1 billion more than what analysts anticipated.
Revenue from JPMorgan’s investment banking division climbed 17% from a year ago to $2.6 billion while client trading jumped 25% to $8.94 billion.
“The U.S. economy remained resilient in the quarter,” JPMorgan Chase CEO Jamie Dimon said in statement with the earnings release.
“However, significant risks persist — including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices. As always, we hope for the best but prepare the Firm for a wide range of scenarios,” Dimon added.
JPMorgan’s stock was roughly flat in early market trading following the release.
The results kicked off a third quarter earnings season for the US banking industry as Wall Street’s biggest lenders are riding high.
Three months ago, their clients shook off uncertainty after the unveiling of tariffs earlier in the year temporarily froze the deals market. Large companies have since unleashed a manic boom through the summer in IPOs, corporate bond sales and some sizable mergers.
These same lenders stand to benefit from what has so far proved out as a loosening of capital and supervisory requirements from their Washington regulators.
David Hollerith covers the financial sector, ranging from the country’s biggest banks to regional lenders, private equity firms, and the cryptocurrency space.
Click here for the latest economic news and indicators to help inform your investing decisions
Read the latest financial and business news from Yahoo Finance