JPMorgan Chase earned $3.6 billion in profit even as its loan losses increased during the third quarter, the first of the big U.S. banks to report results said Wednesday.

The $3.6 billion profit figure is well above the $527 million the bank earned during the same period last year, when the worldwide financial crisis was beginning.

Despite the profit spike, it also says it nearly doubled the amount of money it set aside for failed loans in the quarter. The bank boosted its consumer credit reserves to $31.5 billion. That's 5.3 per cent of the bank's total outstanding loans.

The bank also strengthened its Tier 1 capital ratio to an estimated 10.2 per cent at September 30, 2009. That's above the 9.7 per cent it was at during the previous quarter, and the 8.9 level it sat at during the same period last year.

The bank is now the largest in the United States by assets. It has fared better than rivals due to its relative lack of exposure to subprime mortgages, analysts say.

The company now has 220,861 employees, a decrease of 7,591 compared to the previous year, it said in a release.

In its earnings statement, the bank also describes the near-term path of the economy as "uncertain" and "challenging."

Big profits in divisions such as investment banking helped the New York-based bank earn 82 cents per share during the third quarter. Analysts forecast a profit of 49 cents per share.

In total, the bank took in some $28.8 billion in revenue during the quarter.

With files from The Associated Press