JPMorgan Chase & Co reported sharply higher third-quarter results, topping Wall Street expectations, as gains at its investment bank offset deeper losses on credit cards and other consumer loans.

The second-largest U.S. bank on Wednesday posted net income of $3.6 billion, or 82 cents a share. That compares with $527 million, or 9 cents a share, in the year-earlier quarter.

In this environment, this is a championship performance, said Mike Holland, president of Holland & Co in New York.

Analysts on average had forecast earnings of 52 cents a share, according to Thomson Reuters I/B/E/S.

Credit costs climbed as the bank added $2 billion to its reserves against future losses on consumer and other loans, bringing total reserves to $31.5 billion.

Loan losses jumped and the bank reported $7 billion in net charge-offs on consumer loans, up from $3.3 billion a year earlier.

While we are seeing some initial signs of consumer credit stability, we are not yet certain that this trend will continue, Chief Executive Jamie Dimon said in a statement.

Mark-to-market gains added to the jump in debt and equity underwriting fees to boost profit at the investment bank, which reported net income of $1.9 billion, compared with $882 million a year earlier.

The unit posted a gain of $400 million on leveraged loans and mortgage-related securities that had a $3.6 billion writedown in the year-earlier quarter.

There was a different picture at the bank's credit card business, which reported a $700 million loss, compared with a profit of $292 million a year earlier.

Investors will be watching for JPMorgan, which has remained among the healthiest U.S. lenders during the financial crisis, to raise its dividend. The bank cut the quarterly dividend to 5 cents a share from 38 cents in February.

I still see JPMorgan as being the first big bank to restore dividends, said Anton Schutz, president at Mendon Capital in Rochester, New York.

JPMorgan shares were up 3.7 percent in premarket trading at $47.35. The shares closed at $45.66 on Tuesday on the New York Stock Exchange.

(Reporting by Elinor Comlay; editing by John Wallace)