JPMorgan (JPM) seems bent on turning itself into an investment banking power. A transition which is already paying off from an earnings perspective. A strong showing in investment banking offset some big losses in core commercial banking, notably credit card debts and mortgage activity.

JPMorgan said net income rose to 82 cents a share for the third quarter from 9 cents a share in the third quarter of 2008. Analysts were expecting about 42 cents. So this would qualify as a big upside surprise.

It raises expectations for Goldman Sachs (GS) and Morgan Stanley (MS), who will report this week as well. Investment banking net revenue rose 85 percent, amid a strong trading environment. Banking fees were up 4 percent to $1.7 billion; equity underwriting fees soared 31 percent, debt underwriting fees rose 20 percent, while advisory fees fell 33 percent. Fixed income revenue soared to $5 billion, up $4.2 billion. On the consumer-banking side, the bank added $2.0 billion to its consumer credit reserves, bringing the total to $31.5 billion or 5.3 percent of loans. This could go higher still. 

For more:
- here's the release

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