JPMorgan Chase & Co has today reported a 17% drop in third-quarter profit, as rising US interest rates sapped the appetite for deals and weighed on its investment-banking arm.
Profit for the quarter ended September 30 was $9.74 billion, or $3.12 per share, compared with $11.69 billion, or $3.74 per share, a year earlier, the bank said.
Analysts had expected $2.88 per share.
The bank set aside $808m in reserves, as the US Federal Reserve's efforts to cool the economy through interest rate hikes have stoked fears of an economic downturn.
By comparison, in the same quarter last year, the bank had released $2.1 billion of reserves that it had kept aside for potential Covid losses.
Dealmaking around the world has slumped as US companies turned more cautious despite a stronger dollar increasing the appeal of international mergers and acquisitions.
The dearth of activity has led to a slump in banks' fees from underwriting and advising M&A and initial public offerings, contrasting a record run last year.
JPMorgan Chase & Co said its investment banking revenue slumped 43% to $1.7 billion.
The bank reported $32.72 billion in revenue for the quarter, up from $29.65 billion last year.
