The US bank’s third-quarter profits came in at US$12.9 billion, down 2% from the same period a year ago as costs tied to delinquent loans and credit risk increased.

Revenues were US$42.7 billion, up 7%.

The bank’s results benefited from increases in revenues for equity trading as well as increased fees for asset management and investment banking.

However, costs tied to credit losses more than doubled from the year-ago period to US$3.1 billion due to in part to US$1 billion in reserves in case of bad loans.

JPMorgan has previously said it expects credit costs to “normalise” after an exceptionally strong period in which consumers had excess cash from pandemic-related relief programmes.

Chief executive Jamie Dimon offered a measured outlook, noting that inflation is “slowing” and the US economy “remains resilient”, but warning of large fiscal deficits and other concerns.

“We have been closely monitoring the geopolitical situation for some time, and recent events show that conditions are treacherous and getting worse,” Dimon said.

“While we hope for the best, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment.”

Shares rose 1.2% in pre-market trading.