Feb. 28 (Bloomberg) -- JPMorgan Chase & Co. Chairman and Chief Executive Officer Jamie Dimon said investment banking and trading will recover from the slump that occurred at the end of last year.
“Is the downturn you saw in the fourth quarter cyclical or secular?” Dimon said today at a presentation in New York, where the bank is based. “We’re telling you it is cyclical. I’m not hedging that, OK. It is cyclical.”
The industry’s revenue from trading stocks and fixed-income products dropped 10 percent last year, according to a presentation from the company. Trading volume and underwriting activity fell in the second half amid concern that the European debt crisis would cause a global economic slowdown.
JPMorgan’s investment bank had a 17 percent return on equity last year, unchanged from 2010, according to the presentation. Its peers’ average ROE, a measure of profitability, dropped to 8 percent from 14 percent, the bank said.
To contact the editor responsible for this story: Dan Kraut at email@example.com