JPMorgan Chase's third-quarter income fell 4 percent on weaker investment banking and trading results and a loss in its private equity division. The bank also set aside $1 billion for litigation tied to poorly-written mortgage loans and securities.

The New York bank said Thursday it earned $4.3 billion, or $1.02 per share, compared with $4.4 billion, or $1.01, during the same quarter last year. Analysts surveyed by FactSet forecast the bank would earn 91 cents per share.

JPMorgan Chase & Co.'s fees from investment banking fell 31 percent to $1 billion as investors stayed away from markets during the tumultuous third quarter.

Debt underwriting fees fell 37 percent to $496 million as fewer companies raised money by selling debt. Many IPOs were also shelved in the quarter. That led to a 47 percent decline in stock underwriting fees.

The market turmoil also reduced the value of many of JPMorgan's investments. Its private equity business lost $347 million loss.

JPMorgan Chase & Co. is the first major U.S. bank to report earnings. Citigroup Inc., Bank of America Corp. and Goldman Sachs Group Inc. report next week.

Lawsuits against U.S. banks for bad mortgage loans piled up in the third quarter, including a federal suit against 17 banks for selling risky mortgage-backed securities. JP Morgan set aside $1 billion in the quarter to fight such lawsuits.

JPMorgan's lending business improved. Retail banking revenue rose 11 percent to $7.5 billion. Credit card sales volume rose 10 percent, reflecting higher consumer spending.

JPMorgan's stock fell 35 cents, or 1.1 percent, to $32.85 in pre-market trading Thursday.