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JPMorgan Sees Strong Third-Quarter Investment Banking, Trading Growth
JPMorgan says two important parts of its business may perform strongly this quarter.
These parts are helping companies make deals and helping customers trade in financial markets.
Doug Petno, one of the bank’s co-presidents, said revenue in both areas could rise by a mid-to-high teens percentage.
He also said many companies are still interested in making deals.
JPMorgan had already reported strong growth in these businesses during the previous quarter.
Investors were worried after Bank of America gave a weaker forecast.
Petno’s comments helped JPMorgan’s stock finish higher.
He also said Jamie Dimon is still very active as chief executive.
JPMorgan may buy another company someday, but only if the opportunity and price are right.
JPMorgan expects investment banking fees and markets revenue to rise by mid-to-high teens percentages in the third quarter.
Co-President Doug Petno said deal activity and pipelines remain robust, with strength across investment banking and markets.
JPMorgan’s second-quarter investment banking fees rose 30% year over year, while markets revenue increased 35%.
JPMorgan shares closed about 0.7% higher after Petno’s comments eased concerns following Bank of America’s weak forecast.
Petno said CEO Jamie Dimon remains active, while potential acquisitions would require attractive valuations and meet a high standard.
- Who
- JPMorgan Chase, co-President Doug Petno, CEO Jamie Dimon, and co-President Troy Rohrbaugh.
- What
- JPMorgan forecast strong third-quarter growth in investment banking fees and markets revenue.
- Where
- The Barclays Global Financial Services Conference.
- When
- September 15; the forecast concerned the third quarter.
- Why
- JPMorgan said deal activity, pipelines, and client activity remained strong despite market volatility and uncertainty.
Key facts
- Third-quarter outlook
- Investment banking fees and markets revenue were expected to increase by mid-to-high teens percentages.
- Second-quarter investment banking growth
- Fees rose 30% from a year earlier.
- Second-quarter markets growth
- Markets revenue increased 35% year over year.
- Share performance
- JPMorgan shares closed about 0.7% higher after the comments.
- Acquisition strategy
- The bank is open to opportunistic acquisitions, but applies a very high standard and seeks the right valuation.
- Leadership
- Jamie Dimon remains active as CEO; Doug Petno and Troy Rohrbaugh became co-presidents in June.
Quotes
Doug Petno
JPMorgan Chase co-president
“We started this quarter with a strong pipeline that continues. I touched on management and board confidence-that's driving tremendous amount of M&A activity. It's as high as we've seen in some time”
livemint.com
“The company is big. We're scaling rapidly. We have big, big plans, big ambitions. So there's a lot for Troy and I to do to give him leverage to round us out as executives”
livemint.com
Sources
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