JPMorgan's Trading Revenue Is on Pace to Jump, Pinto SaysBy
First-quarter investment-banking revenue seen slightly higher
‘The year has started well,’ bank’s trading chief says
JPMorgan Chase & Co.’s trading revenue is on pace to increase by “mid to high single digits” in the first three months of 2018, with a spike in market volatility poised to help Wall Street firms break a three-quarter slump in that business.
“Clearly, the year has started well,” Daniel Pinto, who oversees the trading and investment-banking unit of the largest U.S. bank, said Tuesday. He cited currencies and equities as particular areas of strength in response to a question from an analyst at the firm’s annual investor day.
Volatility is back in markets, as U.S. stocks experienced their worst single-day plunge in almost seven years earlier this month and 10-year Treasury yields reached the highest level in more than four years. While the wild run may have unnerved ordinary investors, for large banks it represented the possible end of a preternatural calm that weighed on results in 2017.
Pinto, 55, said first-quarter investment-banking revenue for the industry is on pace to be unchanged or slightly up from a year earlier.
The bank said earlier Tuesday that annual profit could increase by $7 billion in coming years from rising U.S. interest rates and accelerating loan growth. The U.S. tax overhaul will boost return on tangible common equity by as much as 3 percentage points, according to the company.
JPMorgan fell 0.4 percent to $118.30 at 2:55 p.m. in New York, leaving the shares up almost 11 percent for the year. The KBW Bank Index dropped 0.3 percent and is up 7.4 percent for the year.