JPMorgan Chase & Co. reported a surprise rise in third-quarter net interest income and raised its forecast for the largest revenue source, although U.S. interest rates are expected to fall continue to decline.

Revenue from the bank’s Wall Street operations also defied analysts’ estimates, with investment banking fees rising 31%, beating estimates of a 16% gain. Stock traders saw a 27% increase in revenue.

Despite these strong results, CEO Jamie Dimon presented a somewhat gloomy economic outlook.

“While inflation slows and the U.S. economy remains resilient, several critical issues remain, including large budget deficits, infrastructure needs, trade restructuring and the remilitarization of the world,” Dimon said in a statement Friday. press release. On the geopolitical front, Dimon said “conditions are dangerous and getting worse” and that the outcome “could have far-reaching effects both on short-term economic outcomes and, more importantly, on the course of history “.

After the Federal Reserve last month began cutting rates for the first time in more than four years, analysts began lowering their forecasts for how much banks could expect to make from their lending activities. But JPMorgan said its net interest income rose 3% to $23.4 billion, beating expectations for a slight decline. The bank said the NII for 2024 would be around $92.5 billion, compared to a previous forecast of around $91 billion.

JPMorgan shares, up 25% this year through Thursday, were up 2% in early trading in New York.

JPMorgan reported third-quarter results Friday alongside rival Wells Fargo & Co., with Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley due next week.

Shareholders are already nervous after a period of record gains. Last month, JPMorgan Chairman Daniel Pinto said analysts’ estimates for the bank’s 2025 NII were “not very reasonable” given rate expectations, leading to the highest stocks have been falling for more than four years.

The company’s results included a $3.11 billion provision for loan losses and $2.09 billion in net write-offs, representing a reserve build of approximately $1 billion.