JPMorgan Sees Better-Than-Forecast Trading Revenue This Quarter

JPMorgan Chase & Co. is expecting third-quarter trading and investment-banking results to be better than the firm earlier forecast, according to Marianne Lake, co-head of the firm’s consumer and community bank. 

Markets revenue will likely be down 10% from a year earlier, Lake said Tuesday at an investor conference hosted by Barclays Plc. Results are particularly strong in equities -- “better than we expected at second-quarter earnings,” she said. 

Investment-banking fees will increase from a year earlier, boosted by continued momentum in mergers and acquisitions, after the firm’s bankers posted their best three months ever in the second quarter. This year is on track to become most-active year for global M&A, according to data compiled by Bloomberg. 

“It’s still true that we expect to be up year-on-year and down sequentially, but more up year-on-year and less down sequentially than we thought at second quarter,” Lake said of investment-banking results. 

Lake, who was named co-head of JPMorgan’s massive consumer and community banking business earlier this year, alongside Jennifer Piepszak, also said that consumer credit-card spending is still up almost 20% from 2019, even with a recent slowdown tied to the delta variant of Covid-19. 

“It is true that we’ve seen a bit of softening in travel -- in airlines and lodging most particularly,” Lake said. “I think that’s relatively to be expected considering the delta variant has a little bit knocked consumer confidence, at least temporarily, but overall credit-card spend, I would say, is robust.” 

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