JPMorgan Chase reported a 17 per cent year-on-year drop in net income in the third quarter, as the bank took credit-loss provisions of $1.5 billion (€1.54 billion) amid growing worries of an economic downturn.

The largest US bank by assets said on Friday net income for the quarter was $9.7bn, or $3.12 a share, down from $11.7bn, or $3.74 per share, in the same period last year. Analysts had forecast quarterly net income to be down at $8.9bn, or $2.88 per share, according to consensus data compiled by Bloomberg.

“In the US, consumers continue to spend with solid balance sheets, job openings are plentiful and businesses remain healthy,” JPMorgan chief executive Jamie Dimon said in a statement.

“However, there are significant headwinds immediately in front of us — stubbornly high inflation leading to higher global interest rates, the uncertain impacts of quantitative tightening, the war in Ukraine, which is increasing all geopolitical risks, and the fragile state of oil supply and prices,” he added. — Copyright The Financial Times Limited 2022