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(Sharecast News) - Profits at JPMorgan Chase came in ahead of expectations on Tuesday, despite a fall in investment banking fees, bolstered by favourable markets and a "resilient" US economy.
Reported revenues at the Wall Street bank rose 7% year-on-year in the three months to December end, to $45.8bn.
Net income was $13bn, down on last year's $14bn but ahead of forecasts for $12.8bn.
Investment banking fees fell 5% year-on-year, but much of that was offset by a 17% surge in markets revenues.
As result, net revenues in the commercial and investment bank rose 10% at $19.4bn, while the consumer and community banking unit posted a 6% increase in revenues, also to $19.4bn.
JPMorgan's veteran chief executive Jamie Dimon called it a "strong" quarter.
"These results were the product of strong execution, years of investment, a favourable market backdrop and selective deployment of excess capital," he said.
"The US economy has remained resilient. While labour markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend and businesses generally remain healthy."
Looking ahead, Dimon said these conditions could persist "for some time, particularly with ongoing fiscal stimulus, the benefits of deregulation and the Fed's recent monetary policy".
But he also warned that markets continued to "underappreciate the potential hazards, including from complex geopolitical conditions, the risk of sticky inflation and elevated asset prices".
Dimon has previously warned that stock markets are at risk of a major correction. Equities have soared over the last year, despite heightened geopolitical risk and widespread economic uncertainty, on the back of the artificial intelligence boom.
JPMorgan also flagged $2.2bn of provisions for possible credit losses, after the bank agreed to take over Apple's credit card portfolio from Goldman Sachs.
Full-year net income fell 2% at $57bn
As at 1440 GMT, JP Morgan's shares were off 1%.