😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

JPMorgan sees investment banking revenue jumping as much as 30% in 2Q

Published 06/12/2024, 04:50 PM
Updated 06/12/2024, 06:10 PM
© Reuters. FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015.  REUTERS/Mike Segar/File Photo
JPM
-

By Nupur Anand

NEW YORK (Reuters) -JPMorgan Chase boosted its outlook for investment banking revenue, forecasting a jump of 25% to 30% in the second quarter fueled by capital markets, a top executive said on Wednesday.

The forecast became more bullish than in May, when the bank predicted investment banking revenue would rise by a mid-teens percentage in the second quarter.

"Capital markets continues to be extremely robust and the overall franchise has improved," said Troy Rohrbaugh, co-CEO of JPMorgan's commercial and investment bank.

Trading revenue is expected to improve slightly, exceeding the bank's earlier estimate for a percentage gain in the mid-single digits.

In the first quarter, JPMorgan's trading revenue fell 5% to $8 billion, with revenue from fixed income, currency and commodities dropping 7%, while equities was flat.

Meanwhile, investment banking revenue gained 27% to $2 billion in the first quarter, driven by higher fees for debt and stock underwriting.

JPMorgan's board has identified Rohrbaugh as a potential candidate to succeed CEO Jamie Dimon, who is expected to step down in less than five years.

The other contenders include Jennifer Piepszak, co-CEO of commercial and investment banking, Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management.

Rohrbaugh outlined leadership changes across the bank's Wall Street division, including his own promotion in January to run it alongside Piepszak.

"A lot of firms when they create co-heads, it turns into a cage match -- that's definitely not how JPMorgan works," Rohrbaugh said.

Given their respective backgrounds, Rohrbaugh typically focuses on markets, while Piepszak concentrates on investment banking, and they jointly manage payments.

"That said, if I'm on a plane, then everyone in markets will call Jenn (Piepszak) and she'll make the decision," Rohrbaugh said. "And Jamie will hold us jointly responsible for the outcome and anything that is truly strategic ... Jamie can get you anywhere."

© Reuters. FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015.  REUTERS/Mike Segar/File Photo

Rohrbaugh, who traded currency options earlier in his career, said the Federal Reserve will probably delay interest rate cuts beyond market expectations.

The Fed held interest rates steady earlier Wednesday and pushed out the start of rate cuts to perhaps as late as December.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.