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JPMorgan profit rises on investment banking boom, trading strength
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JPMorgan profit rises on investment banking boom, trading strength
Oct 14, 2025 3:59 AM

(Reuters) -JPMorgan Chase's ( JPM ) profit rose in the third quarter, fueled by multi-billion dollar deals and IPOs that boosted its investment bank, along with stronger trading performance.

Profit at the largest U.S. bank climbed to $14.39 billion, or $5.07 per share, in the three months ended September 30, it said on Tuesday. That compares with $12.9 billion, or $4.37 per share, a year earlier.

"While there have been some signs of a softening, particularly in job growth, the U.S. economy generally remained resilient," CEO Jamie Dimon said in a statement.

However, he warned of a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation.

Corporate dealmaking has picked up sharply this year after a brief slowdown in April, supported by a resilient economy and hopes of interest rate cuts that pushed stocks to record highs.

Investment banking fees at JPMorgan ( JPM ) rose 16% in the third quarter. Meanwhile, trading revenue also soared at a time when economic uncertainty remains.

Renewed confidence has lifted investment banking across Wall Street, with dealmakers expecting an even stronger environment in 2026 as the U.S. Federal Reserve continues to cut rates.

JPMorgan ( JPM ) collected the most investment banking fees among its rivals so far this year, according to analytics firm Dealogic.

Earlier this week, JPMorgan ( JPM ) announced plans to hire bankers and invest up to $10 billion in U.S. companies critical to national security and economic resilience as part of a broader $1.5 trillion pledge.

Industry executives have said consumers remain in good financial shape, helped by the strong labor market and rising wages. That has also meant regular debt payments and steady demand for new loans.

At JPMorgan ( JPM ), NII rose 2% in the third quarter to $24.1 billion.

Large banks such as JPMorgan Chase ( JPM ) and Bank of America serve as a window into the U.S. economy, offering insight into consumer spending and borrowing, as well as business activity.

As the government shutdown delays the release of key economic indicators, investors will scrutinize Dimon's remarks for his insight on the economy.

Shares of the bank were flat in premarket trading after results.

(Reporting by Manya Saini in Bengaluru and Nupur Anand in New York, editing by Lananh Nguyen and Anil D'Silva)

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