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JPMorgan Chase CEO Jamie Dimon has announced that the bank is helping to offset fees on its way to one of its strongest quarters, offsetting anemic loan growth and slowing trade revenues.
“Investment banking may be one of the best quarters we’ve ever seen,” Dimon said at a virtual conference hosted by Morgan Stanley on Monday.
“I would use a number like 20 percent last year [and] the previous quarter. It could be 15-20 percent. The reason for this is that there are big agreements that can be closed or not. ”
Since mid-last year, Wall Street banks have benefited from a rise in mergers and acquisitions. The rise of special purpose buying companies, private equity capital, looking for business and large corporate buyers have boosted strong markets for debt and capital raising.
JPMorgan is currently ranked first in the league of investment banking shares earned globally, according to Refinitiv, which now has more than $ 5.5 billion, up from $ 3.988 billion a year earlier. The bank has also raised its share fee to 8.3 per cent from 7.5 per cent.
Dimon warned that the latest wave in fixed income securities and stock trading has slowed this quarter.
“Last quarter was extraordinary. The final quarter was extraordinary. I would call this quarter more normal. ” Dimon he said.
The bank is projected to see revenue from trading in the next quarter “at $ 6 billion north, which is still pretty good.”
The area of concern for bank investors and analysts has been poor growth in lending, as banks have put liquidity on the market and consumers are keeping the money they earn from the US government and stimulus programs. Federal Reserve.
Dimon said the bank sees only “small” loan growth. He said he will eventually receive the covers of a strong U.S. economy.
Dimon’s appearance at the conference was used to reduce JPMorgan’s 2021 forecast of net interest income, which is the revenue generated by interest-bearing assets from financing costs in advance of $ 52.5 billion, up from about $ 55 billion, which is “slightly disappointing. “He admitted that he was. .
JPMorgan reported earnings in the second quarter on July 13th earnings grew fivefold in the first quarter.
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