(Reuters) - JPMorgan Chase's ( JPM ) first-quarter profit rose 9%, helped by higher fees from dealmaking and a record performance in equities trading.

Investment banking fees rose 12% while equity markets revenue surged 48% to a record of $3.8 billion, as business was largely buoyed by optimism in the first three months of 2025 that U.S. President Donald Trump would enact pro-growth policies, ease regulations and lower taxes.

Shares climbed 4% before the open.

However, the uncertainty surrounding the trade policy has upended those hopes and fueled market turbulence. Trump last week unveiled steep reciprocal tariffs on dozens of countries, only to pause many of them on Wednesday.

"Clients have become more cautious amid an increase in market volatility driven by geopolitical and trade-related tensions," CEO Jamie Dimon said. "The economy is facing considerable turbulence, including geopolitics."

JPMorgan ( JPM ) increased its provisions for credit losses to $3.3 billion from $1.9 billion last year. Consumers and businesses could struggle to repay their loans if new import levies reignite inflation and dampen economic growth.

"You'll see more credit problems," Dimon told Fox Business' "Mornings with Maria" program on Wednesday.

The heightened volatility due to shifting expectations lifted banks' trading business as investors quickly adjusted their portfolios.

Investment banking fees rose to $2.2 billion. Trading revenue climbed 21%, higher than the earlier expectations of a low double-digits percentage gain.

Earnings were $14.6 billion, or $5.07 a share, for the three months ended March 31, the biggest U.S. bank said on Friday. That compares with $13.4 billion, or $4.44 a share, a year earlier.

(Reporting by Niket Nishant in Bengaluru and Nupur Anand in New York, editing by Lananh Nguyen and Sriraj Kalluvila)