JPMorgan Chase ( JPM) reported third-quarter net income of $527 million, or 11 cents a share, above analysts' forecasts, compared with year-earlier earnings of $3.4 billion, or 97 cents a share.

The latest quarter includes an after-tax charge of $1.2 billion to conform loan loss reserves and an extraordinary gain of $581 million from the acquisition of Washington Mutual's banking operations, which closed on Sept. 25.

"Our third-quarter financial results declined sharply, driven by markdowns on mortgage trading positions and leveraged loans, and higher credit costs due to continued deterioration in our home-lending portfolio," said Jamie Dimon, chairman and CEO in a statement Wednesday.

Dimon also said because of the "uncertainty in the capital markets, housing sector and economy overall, it is reasonable to expect reduced earnings" for JPMorgan over the next few quarters.

JPMorgan Chase has been one of the few banks that have remained above water throughout the credit and housing crisis. Even so, analysts expected the company to post a loss of 21 cents a share, according to Thomson Reuters.

JPMorgan Chase has had two major acquisitions in the last six months, both facilitated by the federal government. It acquired major investment bank Bear Stearns in June and bought Washington Mutual last month.

JPMorgan Chase said previously it planned to take a whopping $31 billion writedown in the third quarter due to its conservative marks against WaMu's troubled loan portfolio.

At the time of the WaMu deal, the New York bank also said it planned to add roughly $600 million to its allowance for loan losses, specifically for subprime and prime mortgages , among other things.

The company also said in August, as part of a state and federal settlement regarding auction-rate securities that it planned to buy back roughly $3 billion worth of the securities.