JPMorgan Chase & Co has today reported higher-than-expected quarterly profit as gains from higher interest rates and a growth in loans helped the bank offset weakness in bond trading revenue.
The bank is the largest in the US by assets and its results are often seen as a barometer of the economy.
It has benefited from a tax windfall and a strong economy that has led to higher interest rates and kept loan defaults in check.
Average core loans was up 6% in the third quarter even as higher rates crimped borrowing in areas such as mortgage loans.
Markets and investor services revenue, which includes revenue from trading bonds and stocks, was up just 1%, as financial markets were hit by escalating trade war between Beijing and Washington and worries about slowing global growth.
"The US and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy," chief executive Jamie Dimon said.
Overall, JPMorgan's total revenue increased 5.2% to $27.82 billion, as the lender's diverse business mix helped it weather the ups and downs of the trading business.
All four of its four main businesses recorded a rise in revenue.
The bank's net income rose to $8.38 billion, or $2.34 per share, from $6.73 billion, or $1.76 per share in the year ago period.
Analysts had expected earnings of $2.25 per share, according to I/B/E/S data from Refinitiv.
Net interest income rose 7% to $14.1 billion as the US Federal Reserve raised rates four times since the third quarter of last year, bringing it to 2.25%.