JPMorgan's profit rises on investment banking, trading strength

JPMorgan ​Chase's profit rose in the third ​quarter, boosted by growth ‌in ​investment banking and trading.

The US banking giant on Tuesday posted net income of $15.3 billion, or $5.57 per ‌share, for the three months ended September 30, compared with $14.4 billion, or $5.07 per share, a year earlier. Wall Street's trading desks have enjoyed a banner year, ‌with JPMorgan extending its winning streak as market volatility driven by uncertainty over ‌global interest rates and surging energy prices boosted trading activity.

The steady stream of market-moving events has kept investors on edge, driving them to rejig portfolios and hedge ⁠against risks. Revenue at ​JPMorgan's markets ⁠division, which houses its equity and fixed-income trading desks, climbed 15% in the third quarter from ⁠the prior year.

The bank has retained its crown as the top earner ​of investment banking revenue, according to Dealogic data. The unit has continued ⁠to outperform despite a slowdown in dealmaking as companies grapple with uncertainty over the ⁠Federal ​Reserve's interest-rate path and growing concerns that AI spending may be losing momentum. Meanwhile, debt capital markets have emerged as a notable bright spot ⁠for the industry, as big-tech giants raise billions of dollars to fund growth ⁠ambitions around ⁠AI.

JPMorgan's investment banking fees rose 14% in the quarter, compared with a year earlier.