Not a bad start to the third quarter earnings derby: JPMorgan Chase announced earnings of $1.02 a share, compared with $1.01 a share a year ago. That beat the average analyst estimate of 96 cents a share.

Revenue was basically the same as it was a year ago, but down 11 percent on a sequential basis. The investment bank, the largest contributor to revenue, turned in a decent performance, given challenging markets and low expectations. Revenue and net income were down year over year but up sequentially. Fees were down 31 percent year over year; equity underwriting fees were down nearly 50 percent and debt underwriting fees were down nearly 40 percent.

Market conditions were harsh. To be sure, net revenue in investment banking was bolstered by a $1.9 billion gain from debit valuation due to the widening of the firm's credit spreads, which was partially offset by a $691 million net loss from credit valuation adjustments due to counterparty CDS spreads.

Without the adjustments, the picture would've been much less rosy. In fact, the investment bank's profits would have turned into a loss. Retail financial was a strong point, as net income soared more than 200 percent year over year. Mortgage servicing turned down, however. And servicing-related revenue fell 10 percent year over year, as a result of the decline in third-party loans serviced.

All in all, the report in its entirety was decent news. We noted that reduced expectations have created the conditions for upsides surprises. Certainly the sequential comparisons looked tough. There's no doubt that business conditions have deteriorated over the last six months. The news from other banks, starting with Citigroup and Wells Fargo on Monday, will be just as closely watched.

For more:
- here's the release

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Third quarter earnings reports on deck