JPMorgan ’s profit beat expectations in the third quarter, with investment banking operations posting strong gains, the company said Wednesday.
But the company warned that credit costs remained high.
The bank earned 82 cents a share in the third quarter, up from 9 cents a share in the same quarter a year ago. That was much higher than the 52 cents a share analysts surveyed by Thomson predicted.
JPMorgan shares were 3 percent higher in early trading, at $47.08.
Tier 1 common capital at JPMorgan was also strengthened through capital generation during the quarter, up 8.2 percent to $101 billion, the bank said in a statement.
"While we are seeing some initial signs of consumer credit stability, we are not yet certain that this trend will continue," Chairman and CEO Jamie Dimon said in the statement.
"Despite this near-term uncertainty about the path of the economy, our strong capital position and underlying earnings power will enable us to continue to invest in our businesses, creating a lasting franchise for many years to come," he said.
Some analysts expect JPMorgan to be the first bank to raise dividends, possibly as early as this year, but Chief Financial Officer Michael Cavanagh said that "if we are lucky" dividends could rise to 75 cents or $1 a share from next year.