JP Morgan Chase branch. AFP Yonhap News Agency

Large U.S. banks reaped substantial profits in the third quarter, driven by robust mergers and acquisitions (M&A) activity and increased trading in stocks and bonds amid market uncertainty.

JP Morgan Chase, the largest bank in the U.S., announced on October 14 (local time) that its third-quarter net profit surged 12% year-over-year to $14.39 billion.

Earnings per share stood at $5.07, surpassing the $4.84 expected by analysts surveyed by market research firm LSEG.

Fees from investment banking increased by 16% year-over-year due to a rise in M&A activities, and market-related revenues reached an all-time quarterly high of $8.9 billion, up 25% year-over-year, as increased market volatility led to higher trading volumes.

Jamie Dimon, CEO of JP Morgan Chase, stated, "While there have been some signs of slowing, particularly around employment growth, the U.S. economy has generally remained resilient. However, significant uncertainty persists due to complex geopolitical situations, trade and tariff uncertainties, high asset prices, and entrenched inflation risks."

Other major U.S. banks, including Goldman Sachs and Citigroup, also reported surprise earnings that exceeded Wall Street's expectations.

Goldman Sachs reported that its third-quarter net profit rose 37% year-over-year to $4.1 billion. Earnings per share were $12.25, exceeding the $11 expected by analysts surveyed by LSEG.

Investment banking fees at Goldman Sachs also significantly contributed to the strong third-quarter performance, jumping 42% year-over-year to $2.66 billion.

Citigroup also posted a surprise profit, with its third-quarter net income increasing 15% year-over-year to $3.8 billion.

Jane Fraser, CEO of Citigroup, commented, "Investments in new products, digital assets, and artificial intelligence (AI) are driving innovation and improved capabilities."

Yonhap News Agency