JPMorgan Sees Third-Quarter Trading Revenue Down From Year Ago
(Bloomberg) -- JPMorgan Chase & Co. said third-quarter trading revenue will decline from the same period a year earlier.
“Our markets revenues will be down year-on-year, about mid-single digits,” Chief Financial Officer Marianne Lake said Thursday at a conference in New York.
Prospects for several of the bank’s other businesses look brighter. Net interest income, loan growth and fees from investment banking will be better than the company previously expected, Lake said.
Net interest income will be around $55.5 billion for 2018, she said. Investment-banking fees will be strong and core loans will increase at the high end of a 6 percent to 7 percent range, she said. JPMorgan’s book of what it considers core loans expanded 7 percent in the second quarter, surprising analysts who’d been forecasting mediocre results in that business.
On expenses, the figure will be closer to $63.5 billion than the $63 billion previously expected, according to Lake.
At the same conference Wednesday, Citigroup Inc. raised its forecasts for profitability and expense reductions, facing down skeptics who have doubted the firm can achieve its financial targets. Citigroup CFO John Gerspach said part of the improved outlook comes from U.S. tax reforms and “additional benefits of investments.”
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