JPMorgan Chase (JPM) stock gained 1.6% in Friday premarket trading after the bank increased its net interest income guidance for the year and turned in better-than-expected Q3 earnings.

US banking giant JPMorgan Chase reported third-quarter figures that topped estimates on both the top and bottom lines.

By Niket Nishant and Nupur Anand (Reuters) -JPMorgan Chase shares rose nearly 5% on Friday after profit beat expectations in the third quarter, fueled by gains in investment banking and rising interest payments.

JPMorgan Chase & Co. reported a surprise gain in net interest income for the third quarter and raised its forecast for the key revenue source, even amid expectations that US interest rates will continue to fall.

JPMorgan Chase's third-quarter profit beat expectations as strong investment banking performance and rising interest payments offset a hit from bigger loan loss provisions, sending its shares up before the market open.

CEO Jamie Dimon acknowledged the bank was "over-earning" on net interest income and "below normal" credit costs that will both normalize over time.

JPMorgan Chase reported a dip in profits on higher costs Friday while still topping expectations as executives described US consumers as healthy and the economy as poised to avoid recession.