JPMorgan Trading Revenue on Pace to Drop 15% This Quarter

  • Fixed-income results are down in first two months, CFO says
  • Lake sees no reason June results would break from that trend

JPMorgan Chase & Co. said revenue from its trading businesses has dropped 15 percent so far in the second quarter from the same period a year ago because of low market volatility.

Fixed-income trading is down for the first two months of the period and equities are up “slightly,” Chief Financial Officer Marianne Lake said Wednesday at an investor conference in New York. Lake said she doesn’t see any particular reason those trends would change in June.

Revenue from the world’s biggest investment banks is likely to drop in the second quarter, ending a rebound in fixed income, analysts at New York-based JPMorgan said this month. The U.K.’s exit from the European Union and Donald Trump’s surprise election win fueled more wagers on corporate bonds and the direction of interest rates over the past year, boosting Wall Street trading revenue.

“Low rates, a more cautious outlook on rates, low volatility have led to low client flows and a generally quiet, subdued and challenging trading environment,” Lake said. “There’s not a lot to trade around right now, and so there’s not a lot of market themes.”

Shares of the company fell 1.8 percent to $82.42 at 10 a.m. in New York, compared with a 1.6 percent drop for the 24-company KBW Bank Index. Banks led declines in the S&P 500 Index.

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