The investment banking division of JP Morgan Chase has reported its lowest profits and worst return on equity since the collapse of Lehman Brothers in a stark illustration that the artificially benign conditions for investment banks created in the aftermath of the financial crisis could have come to an end.

Net income for the third quarter was $1.3bn, 33% down on the same quarter last year and the worst quarterly figure since the fourth quarter of 2008 when it reported a loss of $2.4bn.