JPMorgan Chase & Co. expects second-quarter trading revenue to increase by a “mid-teens” percentage from a year earlier, according to Daniel Pinto, head of the firm’s investment bank.
“We said January and February were weak months, and we recovered momentum in March,” Pinto said Wednesday at an investor conference in New York. “That momentum has continued into April and May. Essentially with higher client activity in fixed income, and with slightly weaker client activity in equities, mainly derivatives.”
Wall Street has been slashing costs and personnel amid a prolonged slump in fixed-income markets caused by stricter regulations and low interest rates. The world’s biggest investment banks generated $70 billion in fixed-income revenue last year, half the 2009 peak, according to Coalition Development Ltd.
“It’s still a month to go, so things may change,” Pinto said. “At the moment, it looks like mid-teens up.”
While JPMorgan warned analysts in late February that markets revenue was down 20 percent from a year earlier, first-quarter fixed-income trading revenue fell just 13 percent to $3.6 billion at the biggest U.S. bank, buoyed by strong rates trading. Revenue from trading equities slid 5 percent to $1.58 billion.