JPMorgan is the first U.S. bank to report results since the Federal Reserve's decision in December to raise interest rates by 0.25 percentage points, the first hike in nearly a decade.
Bank of America and Wells Fargo, the second and third-biggest U.S. banks, report on Thursday.
A slide in commodity and oil prices, a slowdown in China, near-zero interest rates, mounting regulatory costs and hefty capital requirements have set up the banking industry for its worst start to a new year since the 2007-2008 financial crisis.
And while stock market activity picked up in March, that was not enough to make up for weak trading volumes during a volatile January and February.
Investment banking revenue fell 24.5 percent to $1.23 billion, even though JPMorgan topped the global league table with $1.22 billion in fees during the quarter, according to Reuters data.
Industry wide, investment banking fees fell 29 percent in the period, the slowest first quarter since 2009.
Financial stocks were the worst performers in the S&P 500 index in the first three months of 2016, falling 5.6 percent compared with the overall index's rise of 0.8 percent.
JPMorgan's stock fell 10.3 percent in the period — but the shares of its five big U.S. rivals fell by even more.
The bank said its total noninterest expenses fell 7 percent to $13.84 billion, helped by lower legal costs.
Like other U.S. banks, JPMorgan has resorted to aggressive cost controls to underpin earnings over the past several quarters as revenue growth remains sluggish.
— Reuters contributed to this report.
Disclosure: UBS, its affiliates, or subsidiaries have acted as a manager or co-manager in the underwriting or placement of securities ofJPMorgan or one of its affiliates within the last 12 months. UBS and/or its affiliates have received noninvestment banking, nonsecurities related compensation from JPMorgan within the last 12 months.
Correction: This story was revised to correct that first-quarter profit fell 6.7 percent.