JPMorgan beats on earnings — but Jamie Dimon sounds the alarm on global threats

• JPMorgan reported third-quarter earnings on Friday that beat analysts' expectations.
• The banking giant increased revenue by 7% and earnings per share by 1%.
• CEO Jamie Dimon warned of a worsening global environment and lingering threats to the US economy.

JPMorgan reported third-quarter earnings on Friday that exceeded Wall Street's expectations, even as CEO Jamie Dimon warned of a dangerous and worsening global backdrop.

America's largest bank posted a 7% year-on-year rise in revenue to $42.7 billion, pushing earnings per share up 1% to $4.37, ahead of Alphasense's consensus estimate.

JPMorgan's profits were squeezed by a 125% year-on-year increase in its provision for credit losses — the cash it ringfences to cover possible loan defaults — to $3.1 billion.

Net revenue fell 3% in the consumer banking division, but rose 8% in the commercial and investment bank and 9% in the asset and wealth management segment, and nearly doubled in the corporate business.

Net income plunged 31% in the consumer segment and 5% in the wealth management division, but rose 13% for the investment bank and surged 123% for the corporate segment.

Dimon praised his bank's performance in the earnings release, but warned that geopolitical conditions are "treacherous and getting worse," and the outcome of events such as the war in Gaza could have "far-reaching effects on both short-term economic outcomes and more importantly on the course of history."

The billionaire banker also cautioned that while inflation is cooling and the US economy is showing resilience, "large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world" remain important issues.

JPMorgan stock rose more than 4% in late morning trading in New York, bringing year-to-date gains to almost 30%.