JPMorgan profit down 17% as sluggish dealmaking, loan loss reserves weigh

JPMorgan's profit for the quarter ended Sept. 30 came in at $9.74 billion, or $3.12 per share, compared with $11.69 billion, or $3.74 per share, a year earlier

JPMorgan Chase & Co reported a 17% drop in third-quarter profit on Friday, as a worsening economic outlook curbed dealmaking and prompted the largest American bank to boost its reserves for possible defaults.

The biggest U.S. bank's results are being closely watched to assess the real impact on corporate America of the Federal Reserve's aggressive rate hikes to tamp down inflation.

"In the U.S., consumers continue to spend with solid balance sheets, job openings are plentiful and businesses remain healthy," Chief Executive Officer Jamie Dimon said in a statement.

Dimon, however, cautioned that rising interest rates, inflation and geopolitical turmoil pose significant headwinds.

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