New York: JPMorgan Chase & Co is on track for a mid-teens percentage increase in markets revenue in the second quarter compared with a weak period a year earlier, a top executive said on Wednesday.
Daniel Pinto, chief executive for corporate and investment banking, said at an investor conference that the pickup in market activity that began in March continued through April and May and will deliver the revenue increase if it holds.
Markets revenue has been under pressure for five years because of new limits on trading from regulators and less leverage in the financial system.
Mr Pinto said most of the expected revenue impact from lasting changes in the business is now reflected in the company's ongoing results. Future changes in revenue will be more in keeping with market cycles, he said.
JPMorgan has been reducing costs and scaling back businesses put at disadvantage by the regulatory and market changes. Compensation in fixed income is down 25 per cent over the past five years and headcount is down 10 per cent, Mr Pinto said.
At the same time, the bank has been holding, or increasing, its market share of fixed-income businesses, in anticipation of better profits in the future, he said.
Mr Pinto also said the biggest banks will have a scale advantage in defending against cyberattacks on payments services banks provide.
Daniel Pinto, chief executive for corporate and investment banking, said at an investor conference that the pickup in market activity that began in March continued through April and May and will deliver the revenue increase if it holds.
Markets revenue has been under pressure for five years because of new limits on trading from regulators and less leverage in the financial system.
Mr Pinto said most of the expected revenue impact from lasting changes in the business is now reflected in the company's ongoing results. Future changes in revenue will be more in keeping with market cycles, he said.
JPMorgan has been reducing costs and scaling back businesses put at disadvantage by the regulatory and market changes. Compensation in fixed income is down 25 per cent over the past five years and headcount is down 10 per cent, Mr Pinto said.
At the same time, the bank has been holding, or increasing, its market share of fixed-income businesses, in anticipation of better profits in the future, he said.
Mr Pinto also said the biggest banks will have a scale advantage in defending against cyberattacks on payments services banks provide.
© Thomson Reuters 2016
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